Mr. Brian Teyssier, Realtor, GRI, e-PRO, CRS Candidate for RE/MAX Advanced, REALTORS
October (2012) residential Real Estate Stats
- There are 19 CONTINGENT properties compared to 24 last month.
- There are 13 UNDER CONTRACT compared to 11 last month.
- 16 properties SOLD compared to 27 last month.
- There are 98 active compared to 108 last month.
ABSORPTION RATE – Is the rate at which homes are selling in.
- 1. Time Frame = 304 days (total days from January 1, 2012 to October 31, 2012)
- 2. Number of Sold Homes = 261 (from January 1, 2012 to October 31, 2012)
- 3. Number of Active Homes = 98 (at the end of October 31, 2012)
CALCULATIONS:
- Rate of Home Sales = 1.164 – 1 home is sold every 1.164 days. This number is found by taking 304/261(Time Frame/Number of Sold Homes)
- Absorption Rate = 114 days or 4 Months. Found by taking 98 x 1.164(Number of Active Homes x Rate of Home Sales)
What does this tell us?
If market conditions do not change and if no new listings come on the market it will take 4 months for the current inventory to sell at the current pace of the market. A balanced market’s absorption rate is typically between 5 – 7 months.
Roger
6:44 am on Monday, November 26, 2012
If I understand your stats and your conclusion, I think you are saying "Real estate sales are brisk." Your article does not say the geographical region for your statistics.
If my understanding is right, what are some reasons for "brisk sales?" Consumer confidence? Pent up demand? Economy getting looser? More employment relocations because of better business climate?
Bryan
4:06 pm on Monday, November 26, 2012
I assume his region is USC based on the subtitle on the front page ('Almost a balanced market USC'). Based on my recent home search and home sale in USC this past spring, this market demand reflects what I saw.
My house was on the market for exactly 3 days. It went up on Friday, open house on Sunday and I had a full price offer that day. Good houses are not sitting and they are selling.
Of course, Upper St. Clair never had a housing bubble. The home prices and sales didn't follow the national trend and the impact to the local market was due to the economy more than the housing bubble. It is still a highly desired neighborhood and that demand will keep prices up and homes selling fast.