Tristan and his WHITEBOARD – LIVE!
1st Quarter 2018 Rapid City Real Estate
Rapid City Real Estate Market…
Hey everybody, how you doing today? Welcome to Tristan and his WHITEBOARD LIVE! – Monday edition…after the storm with my marker. Managed to actually remember it’s we can do the Rapid City Real Estate Market Report for the first quarter of 2018.
I’ve got a lot of numbers behind me – talking about how real estate has been happening in the past 3 months…the first quarter of the year. Not only have I shown the last year’s numbers but also wanted to give you the different numbers per month. We can not only get a historical look, we can also see the trend as we’re moving down through the year.
So, in 2017 you can see here we’ve got the number of active listings: 519, 549, 587 through the year. It started to pick up each month.
This year has been pretty consistent following the 570’s every month.
Now keep in mind that this active number is just a one day snapshot. One day this is how many active listings there are. The next day there might have been 15 withdrawals and so many solds. But at least it gives us an idea of how many actives there are on the market right now.
The other things to a look at is the number of homes that went under contract. This really gives this the idea of the pulse of the market right now because we can see how many homes are going under contract each and every month. So you can see: 44, 53, 53 in 2017. And obviously you can see here in 2018 we’ve got considerably more under contract, especially here in this last month. We’re seeing that even though we have less active in this month (of March), but more under contract.
So, the Rapid City Real Estate Market is still moving along fairly swiftly.
And we’ll talk about one other thing that gives us a good idea of what type of market it is – whether it be a buyers’ market or a sellers’ market or balanced market. This is called an absorption rate.
The absorption rate determines how long until the market it absorbed. Or…if everything is to remain the same, how many months before we no longer have any more homes to sell.
So, what I’ve done is I’ve taken a six-month snapshot to look at how many homes have sold in the past six months and divided that by the six months (to get a sold-per-month number). That means we’re selling 141.17 homes each and every month. Divide that by the number of actives we have – right here -in 2018. And we get around…real close to 4 months of inventory.
What we’re saying here is that if this sold rate continues and no other homes go active on the market, we have four months until we’re out of homes to sell.
Typically speaking around six is a balanced market that shows a really good middle of the road where neither buyer or seller have an advantage. You get above six that means that homes are languishing on the market a bit, buyers can have the upper hand because there’s a number homes on the market and the buyers feel if they don’t like that home they’ll find another home.
Four shows us that we’re in a pretty solid seller’s market. Fewer homes in the market. Buyers are looking for properties. The sellers hold the upper hand because they’ve got the inventory. They typically will rule the market when you get to this scenario.
So, based on the numbers here – seller’s market exists. Now is a good time to list your home. Buyers are having difficulty finding property sometimes.
But you buyers – keep looking, keep chugging away!
Give me a call to help you with any other real estate needs or any more explanations of how the real estate market is doing. But as you can see here, sellers’ market continues… Welcome to spring market in Rapid City. Seem to be the way things are rolling the past few years.
Give me a call and let me know your thoughts are.
Tristan Emond, Mindful Living Realty… Tristan and his WHITEBOARD.
See you later!