One of the truest indicators of the health of a real estate market is the absorption rate. Simply put, the absorption rate is the numerical representation of the percentage of inventory that is being absorbed and the number of time-periods of supply there is presently on the market.
The information used to calculate the absorption rate is the number of available properties at the end of a time-period and the number of properties sold during that time-period.
As I track the market data only on a weekly basis, I am only, at this time, able to present the data in a weekly format. If I am able to gather the data, I will present a historical look at things in the future.
According to typical historical expectations, when calculating absorption rates on a monthly basis, a supply of 5 months or less is a Seller’s Market; a supply of between 5 and 7 months is a Balanced Market, and a supply of 7-plus months is a Buyer’s Market. In the Milton area over the last 10 months, we have, according to these measures, been in and out of a Balanced Market.
Here’s the chart:
Click the thumbnail above
Remember, the data above is presented with numbers pulled on a weekly basis. That means that, if no more homes came on the market, we would have no homes left for sale after 5 weeks. That won’t happen, but it sure is a good time to get your house on the market right now.
Call me @ 905-208-7002 to discuss how we can position your house in the marketplace.
