2013 Dix Hills, Melville SD#5 Housing Market Sales Data gives 2014 Absorption Rates by Price Range.
2013 was a turning point for the housing market in our area. 2014 looks to be a great year for buying or selling a home! Prices have stabilized, mortgage interest rates are still low. There is pent-up demand from both those wanting to buy and sellers ready to make a move. Demand for housing will come from both 1st-time buyers and move-up buyers. To give you a ‘heads-up” on what to expect in the housing market these 2 charts break-down the data into price ranges. Data is from 2013 sales numbers and January 2014 available inventory.
Absorption Rate explained. Want to know what the real answer is to “How’s the Market”? Then determine the current “absorption rate” – not only for the market area you’re looking at – but the target price range as well. If you’re selling a home, then you’ll have a realistic idea about how much price competition your house will have and how long it will take to sell. If you’re buying in one of the more aggressive price ranges, you may see that you will need to move fast to secure a home.
Absorption Rate is determined by dividing the number of sold homes within a specific period (I’m using 12 months) by the number of months within that period (12). This gives you the per month absorption rate. Then divide the absorption rate into the number of current listings – which gives you the months’ supply of homes.
As we move into the prime selling season, to keep up with sales trends in the local markets it is important to calculate the absorption rate on a monthly basis to get a true picture of the market – which price ranges are moving and how fast.
For any questions or to find out the value of your home in today’s market please contact Cheryl Grossman at 516-901-0577 or firstname.lastname@example.org.