Understanding the Condominium market reports.

We provide 3 different reports that help analyze what is going on in the Gig Harbor real estate market:

The Condo Market Condition Report shows us which way the market is trending?
Knowing that the market is changing before it is public knowledge is a powerful thing. The Condominium Market Condition Report analyzes Gig Harbors' condos and indicates if that price range is seller oriented, buyer oriented, or balanced.

This report can actually show you that the market is changing before it happens through the trends in the price ranges. During a sellers market most of the price ranges in the report will indicate "sellers market" but as the market starts to change, the higher price ranges will move to "balanced". Then the higher ranges will start moving to "buyers" and the middle ranges will move to "balanced". Then the higher and middle ranges will move to "buyers" and the lower ranges will move to balanced, and finally most ranges will move into the "buyers market" category. This trend will happen over several months and by studying the report weekly, you will know the market is changing months before most people, including buyers, sellers, real estate investors, and real estate agents.

Positioning by Absorption Rate
The Absorption Rate is the ability of the real estate market to sell off all of the homes that are for sale.

For example, if 10 homes are sold every month and there are 120 homes for sale then it will take 12 months to sell all of those homes. If there are 240 homes for sale then the absorption rate will be 24 months or 2 years.This assumes that no other homes are listed for sale.

If you would like to sell in 12 months then you need to take the absorption rate into account. In the above scenario with 240 homes for sale, we know that only 1/2 of them will sell in the next 12 months.

To price a property correctly it would have to be in the lower 50% of the price range for similar properties in order for it to sell in the next 12 months. To sell in the next 6 months it would have to be priced in the lower 25% of the competition.

We update these reports at least twice a month and have all the reports archived so we can share with you what has happened in Gig Harbor since 2004.

If you would like to be notified whenever we update the report, please send me an email with "Market Report Notification" in the subject line.

Further explanation…
Competition in the market place affects the sales price of a home. If the demand is constant and the supply is low, the price can increase. On the other hand, if the demand is declining and the supply is constant or increasing, the price will go down.

Five to six months of market time is considered to be a healthy inventory of property. If the market time is less than that, the shortage of property can cause the price to go up. If it is more than that, the glut of properties can cause the price to go down.

One strategy is to price the home in today's market so that it will sell within 30 to 60 days. Experience has taught the industry that if the home sells in the first 30 days that it is on the market, it will sell for its highest price.