So you have a house on the market in Queen Anne County on the beautiful Eastern Shore of Maryland and can't figure out why it's not selling. Well, there really could be a variety of reasons, however, I am going to discuss just one possible reason: INVENTORY!
The absorption rate of your area is very important to know when pricing your home to sell it. If you really want to sell to move on, you may consider the absorption rate before considering market value. You may want to consider a selling price based on the absorption rate.
Not sure what the absorption rate is? I will tell you. It is an estimate of the rate at which a particular classification of properties for sale can be successfully marketed in a given area. An absorption rate must be developed to analyze supply and demand.
Let me give you an example:
This is a current example:
Active Listings in Queen Anne County: 707
Now divide the active listings with what has SOLD:
In the last 6 months: 189 = 3+ Months
In the last 3 months: 106 = 6+ Months
In the last month: 37 = 19+ Months
Now you know how much inventory is currently on the market as of this past month in Queen Anne's County....over 1 1/2 yrs. This is what you are competing against. And this statistic is constantly changing as properties are listed or sold. So, this makes it imperative, as an agent, to keep your clients informed.
Now you just found out how to decide whose market it is:
* Sellers' market conditions-Absorption rate is 1-4 months.
* Normal market conditions-5-6 months.
* Buyers' market conditions-7+ months
Has your agent gone over this bit of information with you? I hope so. If not, ask them to. This example is a generalized absorption rate. Perhaps you want one done with specific data that corresponds to your particular market.
My name is Lisa Longest and I work for Exit Gold Realty. I specialize in Stevensville Md and surrounding cities. Feel free to contact me at 443-786-4200 or email me at lisalongest@exitgoldrealty.com
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