absorption

Guess What!? It’s a Seller’s Market…

You may have heard the terms “Seller’s Market” and “Buyers Market.” Over the past few years, we’ve heard the term “Buyer’s Market” far more than we have the other. These terms are basically how we describe who has more power to control the price of the home. It’s simple supply and demand.

When it’s a Buyer’s Market, the buyer has more control because there are more homes, or a surplus of homes on the market. It usually results in homes dropping in price to meet the buyer’s expectations.

When we’re in a Seller’s market, it means that the supply has been reduced and there are more buyers than there are homes for sale. When this happens, homes tend to sell faster, and buyers tend to find themselves competing for properties.

Absorption rate plays a huge role in the type of market we’re in. Absorption rate is calculated by dividing the number of homes sold in the past 30 days into the number of homes on the market. When the absorption rate falls between 3 and 6 months, the market is fairly balanced between buyers and sellers. If this number goes over 6, we’ll find ourselves in a buyer’s market, and when it’s below 3, a seller’s market.

Today is May 9th, 2011. In the past 30 days, 7,600 single family detached homes have been sold as evidenced by the Arizona MLS data. There are currently 20,970 on the market. So, today the absorption rate is roughly 2.75 months.

In other words, it’s a Seller’s Market.

Christmas Tree Safety

For a majority of my life I have had a fake Christmas tree at Christmas time. For the most part, the hazards were minimal. In fact, the tree was rated as fire-retardant. Through a few pets, including a parakeet who used the lights as a perch to a rat who chewed through the lights one year, we have never experienced a tree fire. Thankfully. But, that’s probably due to the fact that we had no watering to maintain.

In 2000, I had my first real tree and I learned how important it was to water the tree regularly.

Make sure you water your tree regularly. In Arizona, which is a very dry state, it’s critical to keep it flowing.
If the tree isn’t cut properly at the bottom of the trunk, there won’t be enough absorption. Make sure you slice an inch or so off the bottom.
Check the tree daily to make sure the needles are healthy and moist. When they start to fall off, you know that your tree may be dying from lack of water.
Make sure your lights are in good condition. Keep anything that could spark a fire away from the tree.
When you take the tree down, make sure you dispose of it as soon as possible so it doesn’t hang around drying out becoming a hazard.

The speed at which a dry tree ignites will baffle you. Take a look at the video in the player to the right.

Proper safety will ensure you have many more years of Holiday cheer. Happy Holidays.