Greenville Homes Priced Under $150,000 Not Classified As Buyer's Market
We hear Greenville, SC real estate markets referred to as "buyer markets" or "seller markets" but what makes a market good for buyers or good for sellers. The National Association of Realtors® classifies markets based on absorption rates and inventory as follows:
0-5 months = Sellers Market, 5-7 months = Even/Split Market, 7+ months = Buyer’s Market
So what is an absorption rate and what does the 0-5, 5-7, and 7+ months mean? The number of months represents the number of months of inventory on the market. The number of months of inventory is determined by the absorption rate. The absorption rate is determined by taking the number of sold listings for any criteria (price range, city, subdivision, or a mixture) and dividing it by the amount of months (12 for a year or 9 for January to September). You can find the amount of inventory then by dividing the absorption rate number by the amount of active listings.
For instance, lets say that it is August in a local Greenville subdivision and it has 4 homes on the market and 16 have sold since January. This makes an average of 2 homes selling every month and means that there is a 2 month supply in the subdivision. When looking at absorption rates for the entire Greenville area as a whole, it reveals some interesting facts when keeping the definition of a buyer's and seller's market in mind.
Here are some recent Greenville Area real estate statistics:
•Listing Price: $0 - $150K
–Active Listings: 2639
–Sold Listings: 3083
–3083 / 8 mths = 385/mth (Absorption Rate)
–2639 / 385 = 6.85 (Months of Inventory)
–Avg DOM: 83
•$150K - $300K
–Active Listings: 2732
–Sold Listings: 2399
–2399 / 8 = 300/mth (Absorption Rate)
–2732 / 300 = 9.11 (Months of Inventory)
–Sold DOM: 95
•$300K - $500K
–Active Listings: 1123
–Sold Listings: 565
–565 / 8 = 71/mth (Absorption Rate)
–1123 / 71 = 15.82 (Months of Inventory)
Sold DOM: 110
•$500K - $1Million
–Active Listings: 638
–Sold Listings: 174
–174 / 8 = 21.5/mth (Absorption Rate)
–638 / 21.5 = 29.67 (Months of Inventory)
–Sold DOM: 125
•$1Million +
–Active Listings: 144
–Active Solds: 14
–14 / 8 = 1.75/mth (Absorption Rate)
–144 / 1.75 = 82.3 (Months of Inventory)
Sold DOM: 109
These statistics show that Greenville is in a buyer's market in every category except one. The homes priced at $150,000 and below are not in a buyer's market. According the the NAR's® definitions of markets, that price range is an "even/split market." What does this mean? Seller's under $150,000's can expect a better market than those with higher prices and buyers cannot expect the luxury of a buyer's market under $150,000. Seller's under the $150,000's still have to keep things in perspective though since they are not in a seller's market either.
Getting Back to Stagging Basics in the Greenville Real Estate Market
Staging is one of the three main things I focus on when selling homes in the Greenville, SC real estate market. If your staged right, priced right, and marketed right, your home will always out sell the competition. It is important to me to walk through each listing and see what can be done to help it be staged better. It is also important to understand the competition and how it is staged. Since I am constantly looking at homes in the Greenville market, it is very easy for me to walk through a home and know exactly what needs to be done to help it sell. I recently read an article by an agent in Massachusetts who is very successful at listing and selling homes. She went back to the basics on staging the home to sell and mentioned three key goals that she has for each room.
The first thing mentioned was to depersonalize the space. She does this by removing anything like family photos, collections, papers/photos/reminders on the refrigerator, and packing any posters, trophies, etc. in kids' rooms.
The next thing mentioned was clearing high-traffic areas and storing any excess furnishings. The goal here is to maximize the feelings of space and comfort. Too much stuff will make a room look small and distract from the features of the house.
The last thing mentioned was to highlight the key features in every room. This is done by making sure that there is nothing distracting from or in the way of the key feature. Key features could include things like closets, french doors, fireplaces, and windows.
Staging can be a great way to get a head start on packing but can also be one of the best ways to sell your Greenville area home!
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