What is a “Balanced” Real Estate Market

What is a “Balanced” Real Estate Market
by Dave Williams

In the real estate business,  we toss around a lot of terms and unless you’ve spent substantial time preparing for your real estate transaction some of them are bound to go over your head.

Fear Not, for our new series of Real Estate Terms will help you sort them out.

Today we tackle the “balanced market“, which is considered to be an overall real estate market that does not favour the buyer or seller dramatically.

Statistically speaking there are 2 ways to describe a balanced market,

  1. it is a market where home are taking an average of 90 – 180 days (3 to 6 months) to sell
  2. or a market where 40% to 60% of new listings in any given month sell.

Both definitions boil down to how quickly is the inventory (all the homes for sale) getting sold.

Balanced MarketHome Prices in a balanced market tend to increase slowly and steadily, some time appearing flat.

One important note is an overall balanced market is really composed of several various markets, like this image of some teeter totters. Some areas or neighbourhoods may be experiencing down markets while others are up (HOT!) but over all the market (or teeter totters) average out to a balanced line.  If you’re curious how your local real estate market compares to the Ottawa real estate market, feel free to request a personal evaluation.

Advertisements

6 responses to “What is a “Balanced” Real Estate Market

  1. Pingback: What is “Absorption Rate” in Real Estate | Home Team Blog·

  2. Pingback: Ottawa’s Sliding Real Estate Market is Great News for Buyers | Home Team Blog·

  3. Pingback: What % of homes listed for sale in Ottawa sell…you’ll be surprised. | Home Team Blog·

  4. Pingback: More for Less, Reviewing September in Ottawa Real Estate | Home Team Blog·

  5. Pingback: How to Price my House for Sale | Home Team Blog·

  6. Pingback: It’s not the 1990’s in Ottawa Real Estate | Home Team Blog·

What's your take?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s