“The Pond” analogy, refers to a pond with fresh water flowing in from the left, traveling thru the pond and exiting on right. If a property is priced/prepared/marketed well, it enters on the left, “flows” across and exits quickly to the right. Properties that are not priced/prepared/marketed well, sink to two different levels; “Show and Place” or the “Stagnant Mass”. When owners find themselves in these lower levels of the pond, changes need to be made in price/preparation/marketing to get the property back in the “Flow”, so it can be sold and exit the pond.
If we look at the pond chart for the past 6 months, we see that, on average, 2 properties come on the market each month and 1.5 properties are sold. Supply is just barely keeping up with the demand.
With the current inventory of 7 units for sale, that are selling at a rate of 1.5 per month, it would take 4.7 months for all the properties to sell (given no new supply coming on).
Given these numbers, a property owner has a 21.4% chance of selling this month.
If we look at the pond for the past 24 months, we see that an owner’s odds of selling have improved by 2.4%.
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