New Listings
This Month
107
vs. Last Month
+24.42%
vs. Last Year
+4.90%
Closings
This Month
74
vs. Last Month
+1.37%
vs. Last Year
-22.11%
Avg. Sale Price
This Month
$319,557
vs. Last Month
-7.73%
vs. Last Year
-3.27%
Avg. Days On Market
This Month
12.58
vs. Last Month
-45.30%
vs. Last Year
-46.15%
Absorption Rate
This Month
29.04%
vs. Equilibrium
+12.37%
vs. Last Month
+2.12%
Weekly figures are not the best measure of market conditions, because they only measure 7 days at a time. However, they do indicate market direction and fluctuation.
This month, New Listings are up significantly vs. last month and up a little vs. last year. Closings are virtually unchanged vs. last month but down considerably vs. last year. Avg. Sale Price is down moderately across the board and Avg. Days On Market is down an alarming amount vs. last month and vs. last year. The most likely explanation for the decrease in Avg. Sale Price and the Avg. Days On Market is a disproportionate number of lower-priced homes having sold this month as compared to last month and last year. The Absorption Rate has continued to rise to new heights week after week, for the past few weeks. Overall, these figures illustrate a tight market, with very low inventory and strong demand. If New Listings continue to increase, the Absorption Rate may decrease, indicating market conditions loosening and leverage shifting toward buyers. However, New Listings would have to outpace Closings in order for this trend to develop.
The Absorption Rate is a lesser known figure to the general public, but it may be the most important one. It factors in active & pending listings (current inventory), along with the average number of listings sold per month over the past 6 months. The resulting figure is the percentage of current inventory sold each month. Our current Absorption Rate of 29.04% can also be expressed as a 3.44 months’ supply of homes. This rate is 12.37% higher than the market equilibrium rate of 16.67%, or a 6 months’ supply of homes. When the absorption rate is higher than 16.67%, the market conditions favor sellers. When it’s lower than 16.67%, buyers have the upper hand.