October (2012) residential Real Estate Stats

• There are 36 CONTINGENT properties compared to 45 last month.
• There are 21 UNDER CONTRACT compared to 19 last month.
• 33 properties SOLD compared to 28 last month.
• There are 114 active compared to 125 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 = 432 (from January 1, 2012 to October 31, 2012)
• 3. Number of Active Homes = 414 (at the end of October 31, 2012)

CALCULATIONS:

• Rate of Home Sales = .703 – 1 home is sold every .7033 days.  This number is found by taking 304/432 (Time Frame/Number of Sold Homes)

• Absorption Rate = 80 days or 2.67 Months. Found by taking 114 x .703(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 2.67 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.