Absorption rate is average number of homes sold per month over a particular period of time. The months to sell is a reflection of the absorption rate, how long it will take to sell the current inventory at the said absorption rate.
The Pending Ratio is the number of homes currently under contract compared to the number of homes available for sale .
This is a very interesting way to look at the market, as of today:
Average List Price $471,675 Days on the market 108
Median List Price $370,000 Days on the market 54
|Price Range||Active Listings||Monthly Absorption Rate||Pending Past week/Total||Months to sell Current Inventory||Pending Ratio|
|Up to $199,999||32||9.1||5/29||3.5||91%|
It looks like a buyers market under $400.000 as conventional wisdom goes anything less than 6 months inventory is a buyers market.
With the Fed’s pledge to keep record-low rates for an “extended period,” means interest rates will hopefully remain low for home mortgages as well, which should keep the housing market going.
Michael: Always interested in seeing your writings re:Bellingham and more so, this useful piece on absorption…I wonder if this trend will be influenced by today’s Fed announcement?