The balance between buyers and sellers in our local housing market


The balance between buyers and sellers in our local housing market
By Scott Rogers • April 9, 2015
(this one deserves a larger image, click here to view it) Q: Have we reached a balance between buyers and sellers in our local housing market? A: We're not quite there, but we are a lot closer than we have been anytime in the past six years! Here's the methodology behind the chart above.... Most housing market analysts consider six months of inventory (active listings) to be an indicator of a balanced market (between buyers and sellers). The "BUYERS" trend line above is illustrating how many buyers are buying in a six month period - though I have normalized this trend line for market seasonality by looking at it over a twelve month period. Thus, every data point is the sum of the previous twelve months of sales, divided by two. The "SELLERS" trend line above is illustrating how many sellers are in the market (active listings) at any given time - though I have normalized this trend line for market seasonality by averaging the previous 12 months of inventory levels to arrive at each data point. As you can see, our market had an extreme imbalance several years ago -- with many more sellers in the market than were needed based on the number of buyers in the market. Over the past four years, most particularly, we have been seeing a steady increase in buyers in the market as well as a steady decrease in sellers in the market. Read more about the local housing market in my most recent monthly housing market report.... Jump to the full online market report, or download the PDF. Receive Updates by Email Recent Articles: Improving Your Home Might Make More Sense Than Selling And Buying Buying A Home In Harrisonburg When You Do Not Yet Live Here Is Particularly Difficult Right Now An Absence Of Competing Listings In A Broad Price Range Does Not Mean You Can (Or Should) Round Your List Price Up To The Top Of That Range The First Buyer To Make An Offer Will Likely Not Include An Escalation Clause, At Least Not At First Home Buyers Seem To Be Drawing The Line In A More Rational Place Now When Making Offers Buy A House For Yourself, Not The Next Owner Home Sellers Will Not Voluntarily Sell Their Homes For Lower Prices Because Of Higher Interest Rates Unless Competition Forces Them To Do So Homes Are Still Selling Quickly, So You Should Know (Or Think About) Where You Are Going Next Before You List Your Home For Sale Are You Ready To Sell Your Rental Property? Should We Let Buyers View Your Home Before It Hits The Market?
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through May 31, 2023 (unless otherwise noted).
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