The Burke & Co. Weekly Market Report for Avalon, Sea Isle, and Stone Harbor– Week ending December 12, 2020
Of course, you can check out all the homes that got listed, sold, or put under contract in Avalon, Sea Isle, or Stone Harbor this week with the links below. We highly recommend it. If you have any questions about one of these homes (or what yours could be worth in this incredibly strong market), please reach out. We love to talk real estate.
This week we wanted to talk about an important real estate concept and how that concept right now is indicating just how good this market is. The concept is “absorption rate” and– most simply– it’s the amount of time– usually measured in months– that the full inventory currently listed in a given market would go under contract if homes continued to go under contract at their current pace.
It’s calculated by seeing how many homes are going under contract in a given month, then dividing the number of homes listed by that pace. For instance, if in the previous 3 months 30 homes have gone under contract in a market, then homes are moving to pending at a rate of 30 divided by 3 or 10 homes per month. If there are 80 homes on the market, then the absorption rate is 80 divided by 10 or 8. There is an 8 month supply of homes. Or, it would take 8 months for all the homes on the market to sell at the current pace if no new homes were listed.
Generally, an absorption rate between 6 and 12 is considered a rather balanced market. The closer the number gets to 0, the more the market is a sellers’ market. As the number nears 12 or goes beyond it, the more the market favors buyers.
The current absorption rate in each of our three towns:
Sea Isle: 1.74
Stone Harbor: 2.57
If you are ready to start your plans to buy or sell, call us at our team line at 609-478-0333 or email [email protected]
And of course, take a look at all of this weeks new listings, under contract, and sold homes with these links.
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