Panama City Real Estate
How to read the Real Estate Market Summary
For those who may not be 100% sure how to read a market summary, I am providing the following explanations and definitions for your convenience.
What the numbers mean
1. Total available (Active) - This simply is the current number of all listings active at the time the report was generated. Reports are generated during the 1st week of the following month for a given monthly report.
2. Total sold in month - This is the total number of listings sold for the month.
3. Percentage of sold - A percentage rate of the total number of sold listings to the total number of active listings. This calculated using the following formula: Total sold / Total available
4. Absorption Rate - Using the current market conditions, this percentage rate outlines how long it will take to sell all current inventory. This percentage rate is calculated using the following formula: Total Available / Total Sold
How knowing absorption rates is valuable information...
First let's identify a typical grading for market conditions:
- A "Normal Market" exists when the Absorption Rate is between 5 and 6 months.
- A "Sellers Market" exists when the Absorption Rate is lower. (1-4 months)
- A "Buyers Market" exists when the Absorption Rate is higher. (7+ months)
So how does this apply to you and me?
- For Sellers
- For Buyers
- For Me
Knowing the market conditions may help you determine the appropriate asking price for your home, based on your need for a timely sale.
Example: If the Absorption Rate in the 300K to 500K is 4.2, while 500K to 800K is 17.4, and you were considering pricing around 510K, you might reconsider and price your home at 499K instead if you need a faster sale. If you can afford to have your home on the market for a year or more, then pricing it at the 510K would be fine.
Knowing the market conditions in the specific areas in which you are looking to purchase, will prepare you for negotiating. If the Absorption rate in Panama City is 3.1, while in Panama City Beach it is 15.2, and you want to negotiate a lower than asking price, you can see that in Panama City Beach sellers may be more likely to negotiate than in Panama City.
Knowing the Panama City Florida Real Estate market conditions helps me serve my clients as I evaluate pricing and negotiate offers, etc. If my client is looking for that negotiating edge, I will be able to show them where to find the best deals. By demonstrating my knowledge of the Panama City Real Estate market with prospective clients, I am also able to provide all my clients and customers with the best price available for a given property.
To find out more about how my experience and expertise can help you find and purchase the right property that suits your needs, contact me directly: 850-774-6582.
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