Monday, October 11, 2010

St Joe County Absorption Rate

One of the things that I get asked a lot is "how much inventory is on the market?" One of the best ways to demonstrate this is to figure an "Absorption Rate."

To figure the current Absorption Rate, it really needs to be broken down in to different categories and areas. Afterall, the west side of South Bend is going to sell completely different then what Granger is going to sell. From there, you can break it down in to price range to get even a better, more accurate number.

To keep it simple on this post, I just broke it down in to price ranges and did not break it down in to areas. How these rates are figured, is I took the number of homes sold in a category for the last six months and divided by 6 to get an accurate monthly number. I then took the number of available listings in that category and divided by that monthly number. That gives you the number of months of "Available Inventory" that is currently on the market. These numbers are through the end of September.

You can also break these numbers down in to subdivisions if it suits the purpose of what you are trying to accomplish. If you are interested in knowing a particular area of St Joseph County, please shoot me an email at and I will try to get the numbers together for you. One thing to note though, if your house is really a $90,000 home and you see that it currently has 14.15 months of inventory, bumping it up to over $100,000 which has 10.22 months is not going to make your house sell faster. It will cause the opposite to happen. Over priced homes do nothing but sit on the side of the road in this market.

No comments:

Website Hit Counters