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 pay for your home purchase. Let's look at the below example, it is a for all the homes in Paulding County priced between $125,000 to $150,000.
Statistically homes that don't sell 90 days or less sell at or slightly below list price. Homes in the $125K-150K price range that are on the market longer than 90 days have a 76.9% 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 May 2011 Market Absorption for homes ranging from $125K-150K.
Current number of homes on the market _____155 _________
Number of homes that failed to sell in the past 12 months _____462_________
Number of homes that Sold in past 12 months _____191_________
Total number of homes sold per month _____15.92_______
Total Months worth of Inventory _____9.7_ _______
Current number of homes on the market ______155 ________
Number of new inventory for this period ______51.7_______
Total Inventory ______206.7______
Number of Homes that will sell ______47.76 ______ ___23.1%____
Number of Homes that will not sell ______158.94_____ ___76.9%____
Average Sold Price during the last 12 months _$131,133_
If you want to make sure your home is one of the homes that sells as quickly as possible and with as little hassle as possible, we believe your list price should be between $117,900 and $124,900.
