Just like any other product that is bought and sold, real estate is affected by supply and demand. By determining the absorption rate we can tell what you should realistically expect to pay for your home purchase. Let's look at the below example, it is a sample of homes priced between $150,000 to $175,000.
Statistically homes that don't sell 88 days or less sell at or slightly below list price. Homes in the $150K-175K price range that are on the market longer than 88 days have a 73.5% chance of not selling at all! These are the homes you want to focus your search on. These sellers are beginning to believe they are not going to sell. They are also getting realistic on their price expectations.
For Dallas Georgia Homes, here is the February 2010 Market Absorption for homes ranging from $150K-$175K.
Current number of homes on the market _____106 _________
Number of homes that failed to sell in the past 12 months _____316_________
Number of homes that Sold in past 12 months _____139_________
Total number of homes sold per month _____11.58_______
Total Months worth of Inventory _____9.15 _______
Current number of homes on the market ______106 ________
Number of new inventory for this period ______26.5_______
Total Inventory ______132.5______
Number of Homes that will sell ______35 ______ ___26.5%____
Number of Homes that will not sell ______97.5 ______ ___73.5%____
Average Sold Price during the last 12 months _$156,616_
Based on the above information, we believe your offers should begin at a minimum of 10% below the market. In this example that would be roughly $140,900.
For a FREE List of Dallas Georgia Homes under $100,000 click the link or fill out the form below.
