New Listings
This Quarter
9005
vs. Last Quarter
+8.57%
vs. Last Year
-2.32%
Closings
This Quarter
8097
vs. Last Quarter
+25.81%
vs. Last Year
+11.58%
Avg. Sale Price
This Quarter
$259,744
vs. Last Quarter
+6.51%
vs. Last Year
+12.16%
Avg. Days On Market
This Quarter
22
vs. Last Quarter
-13.76%
vs. Last Year
-15.38%
Absorption Rate
This Quarter
37.65%
vs. Equilibrium
+20.98%
vs. Last Quarter
+10.48%
This quarter, New Listings are up moderately vs. last quarter and down slightly vs. last year. Closings are up dramatically vs. last quarter and up significantly vs. last year. Avg. Sale Price is up considerably across the board, while Avg. Days On Market is down considerably across the board. The Absorption Rate is at an all-time high again, for the 2nd quarter in a row. Overall, these figures illustrate an extremely tight market, with very low inventory and strong demand.
Although the market is extremely tight right now, it’s encouraging for buyers to see only a slight drop in New Listings vs. last year. Weekly and monthly figures for New Listings have regularly dropped several points throughout 2020. Of course, New Listings tanked shortly after the COVID-19 outbreak and resulting quarantine, but they appear to have rebounded well. However, the Absorption Rate shows that we have lost an entire month’s worth of inventory since last quarter!
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 37.65% can also be expressed as a 2.66 months’ supply of homes. This rate is 20.98% 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.