ust 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 $100,000 to $125,000.
Statistically homes that don’t sell 88 days or less sell at or slightly below list price. Homes in the $100K-125K price range that are on the market longer than 88 days have a 72.7% 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 April 2011 Market Absorption for homes ranging from $100K-125K.
Current number of homes on the market _____171 _________
Number of homes that failed to sell in the past 12 months _____361_________
Number of homes that Sold in past 12 months _____233_________
Total number of homes sold per month _____19.42_______
Total Months worth of Inventory _____8.1_ _______
Current number of homes on the market ______171 ________
Number of new inventory for this period ______42.75_______
Total Inventory ______213.75______
Number of Homes that will sell ______58.26 ______ ___26.5%____
Number of Homes that will not sell ______155.49_____ ___26.5%____
Average Sold Price during the last 12 months _$110,992_
If you want to sell your home quickly with as little hassle as possible, we believe your list price should begin at a minimum of 10% below the market. In this example that would be roughly $99,900.