Over the past 39 years as an agent in the Rapid City real estate market, one of the questions I have been repeatedly asked is, “How is the current market?” Most agents will address trending housing markets with terms such as: good, bad, hot, or cold. Years ago, it occurred to me that these terms really did not accurately portray the real estate market. A more accurate assessment of housing market trends really boils down to what is happening with buyers and sellers.
Scenario 1: Does the market have a shortage of buyers and too many sellers?
High Inventory Markets: In this type of market, you will find a high inventory of homes for sale, and a shortage of interested buyers. This will generally mean that sellers may need to lower their sale price to attract buyers to their home. The sellers may also need to make some home improvements, and take extra steps to ensure their home stands out to prospective buyers. Sellers may also find it difficult to get their full asking price, and may see their home on the market for a longer period of time.
Scenario 2: Does the market have a lot of buyers, with a shortage of sellers?
Low Inventory Markets: In this type of market, you will see low inventory of homes for sale and a lots of prospective buyers. When you hear the term, “A seller’s market,” this means that sellers can raise their prices since there are a lot of people looking homes, with a shortage of homes on the market. In this scenario, sellers may find themselves getting at or above asking price for their home shortly after placing their home on the market.
I have experienced both of these types of shifts in the market over the years. As agents, we are constantly looking at market indicators to help us determine both current and future market conditions. Our research, combined with years of experience and knowledge of our local markets, allows us to provide the best possible service to our clients. While we may not have a crystal ball that tells the future, we do have the tools necessary to advise our clients, allowing them to make solid real estate decisions.
With all that being said, you may be wondering, “What is the current market trend for real estate in Rapid City and the Black Hills today?” Looking at the current market prices, average time on the market, and existing inventory, in the coming months we are forecasting an increase in inventory, and decrease of perspective buyers.
In 2015, Rapid City and the surrounding areas have seen prices begin to flatter, with current averages of home appreciation at 3%. We predict that in the coming months, days on the market will begin to lengthen, and multiple offers with home selling over full price will become an oddity.
No matter the market conditions, The Kahler Team is your best choice for buying or selling your home in Rapid City and the Black Hills. If you are a buyer, we will work with you to find the perfect home, in the desired location, and for the best possible value. If you are a seller, we will leverage our experience, along with home staging, and technology marketing to help sell your home as quickly as possible, and for the best possible price. Call us today at (603) 939-0508, or visit our website to get started today!