Mankato Buyer's Market and Market Saturation
When it comes to the price attached to a home for sale, buyers and sellers are looking for opposite things. Sellers want to sell their home for as much money as possible. Buyers want to pay as little as possible for their new home. Who wins? It depends on the state of the market: how many homes are available, and how many buyers are looking? Market saturation is the term relating those two numbers.
An average market is considered to be one in which there are roughly three to six months worth of homes on the market. That means that if no more homes came on the market, it would take three to six months for the Buyers who are looking to buy all the homes available. The market saturation is three to six months.
Much less than that and you have a Seller's market, in which Sellers generally have more say in a home's sale price than Buyers. An example of an extreme Seller's market was in the early 2000's, when homes in some parts of the country (including some in the Twin Cities) sold so quickly that in some cases a Seller had multiple offers before their home hit the MLS. At that time the market saturation was probably three weeks or less.
Let's talk Mankato real estate now. The Mankato/North Mankato real estate market is about as far from a Seller's market as it can be. At the moment we have a little over 12 months worth of inventory on our hands. This is a serious Buyer's market, and looks to stay that way for a while.
Happily spring is on the way, and we should see more closings in the coming months than we saw in the last few. That will help with our numbers.
If you want to take advantage, give me a call.
Jim Scheller
www.MankatoHomesOnline.com