This is the time of year when we like to calculate absorption rates in order to understand whether we are trending in the direction of a buyer’s or seller’s market. We compare the pace of sales over the previous 12 months to determine how many Months Supply of Inventory is for sale.
Generally, a balanced market would have 7 months of inventory, more would be a buyer’s market and less a seller’s market. At this time last year, there was less than 2 months of inventory for both Single Family homes and Condo/Townhomes, but clearly the market was starting to shift direction. We continue to stay well under a balanced market due to extremely deficient inventory.
If you would like to discuss the market in more detail, please give us a call: (302) 541-5207.
Leave A Comment