Are you considering selling your home, but discouraged by the difficulty of pricing it to actually sell in this challenging market?
Absorption rate pricing is rapidly replacing CMAs (Comparable or Competitive Market Analysis) as a more accurate measurement of market value, especially in a declining or flat market. If your Realtor hasn’t discussed this measurement with you, be sure and ask him/her about it.
Absorption rate is the rate at which the market is selling properties. How long would it take to sell the current inventory if no other homes came on the market? A balanced market is 5-6 months’ supply. Here’s what’s happening in 37215.
Absorption Rate 37215
Homes Sold Last 10 months/204
Average # Of Houses Sold Per Month/20.4
(Monthly Absorption Rate)
Currently Active In The MLS/217
Month’s Supply Of Houses/10.6
(At current sales rate, this is the time required to sell all of the current properties)
Is this a buyer’s market or a seller’s market?
A buyer’s market. More than six months supply means that there are not enough buyers to purchase the supply.
If you are a seller, what do these stats tell us about the odds of selling your house?
To sell your house within 30 days, your house must be positioned in the top 20 homes for sale out of 217. Does your house make the cut? Top 20 for condition, top 20 for location, top 20 in price. (To sell within 60 days, top 40.)
Now look at the CMA and re-evaluate your listing price.