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.