One of the things that I love most about real estate is that there is always something to talk about. I am actually a very shy person but when someone asks me “How is the market?” I am never at a loss for words. The thing that amuses me most lately is the anticipatory statement, “I hear it’s a sellers’ market and impossible to buy a home.” I laugh and assure them that statement is only partly true.
When real estate professionals determine market value, one of the things they consider is the “absorption rate” which calculates how many months it would take for available homes to sell if no new inventory were to come to market. If the absorption rate is four months or less, it is a sellers’ market. Anything over seven months is a buyers’ market. In a healthy, balanced market there will be four to seven months’ supply of homes for sale.
According to the National Association of Realtors®, the average national absorption rate is four months. In each of the communities serviced by the Community Advocate (see chart to the right), the absorption rate is right around one month.
What is also interesting to note in this chart is that most of the towns experienced low days to offer. This can most certainly be attributed to home sellers pricing their homes correctly based on condition and comparable sales. When this happens the savvy buyers respond in kind. When a home is overpriced, it sits. End of story.
Statistically, there are 326 single family homes available for purchase in seven area towns. For those buyers that are finding it impossible to secure a home, perhaps it makes sense to revisit some of the existing inventory to see if the sellers are ready to make a deal.
|Single Family Snapshot*
|Average Days On Market||# Units Pending||Average Days To Offer||Average List Price (combined)|
*Data from the Multiple Listing Service as of 9/15/2017
Boyle lives in Northborough where she is also the chapter leader of the Neighbor Brigade, a local nonprofit that assists families in times of need. She has been a real estate agent since 2003 and consistently wins awards and accolades for excellence in customer service and sales volume.
Her mission is to empower her clients to make smarter decisions through data-driven insights and local market knowledge. She invites you to follow her on Facebook at www.facebook.com/judyboylerealtor, call or email her for the Fall 2017 Home Buyer and/or Seller Guides, or just to talk real estate.
JUDY BOYLE, REALTOR®
Serving Worcester & Southern Middlesex Counties
With honesty and integrity since 2003