Hi Pam, the Market Absorption Rate is a great metric to help you get your arms around how the market is doing. It measures the rate of sale by calculating how long it will take to absorb the existing inventory. Expressed in months, it is a helpful gauge of how the market is moving. To calculate you divide hte total inventory by the number of properties that have gone under contracct in the last 30 days.
Total Inventory in Bridgewater = 297
Total Under Contract in last 30 days = 38
Market Absorption/Time to Sell = 8 months
Breaking it down to a finer cut by price point can be helfpul, as the results can vary.
Under $500,000: 189/23 = 8 months to sell
$500,000 = $999,999 = 94/14 = 7 months to sell
Over a million = 14/1 = 14 months to sell
Post tax credit, the results for Bridgewater is quite even up to the million mark. Building up to the Tax Credit deadline, the lower price points were moving briskly as first time buyers gunned towards the deadline. We've see a slowdown, post deadline, with the urgency lessened for sure, and for many buyers, gone. The market has slowed down Pam and so it is even more important to get everything right in your marketing effort in order to successfully sell. Because although it has slowed, homes are selling - 38 of them in Bridgewater in th last 30 days. To put it in perspective, 5-6 months to sell is considered a "normal" market, less than 5 is considered a "seller's" market; over 6 months a "buyer's" market.
To see a full view of all homes that have gone under contract, click on the Gallery View Link: o http://mls.gsmls.com/mlsreports/mainListingReport.do?method=
Johanna is right - homes do sell between a 1-5% band of their asking price - once they hit their "strike price" as judged by the buying public. I find this to be consistently true across communties, counties, price points. It points out the important of getting your price right, because in a declining market, time is not on the side of the seller. If you price high, and try to chase the market, you will sell for less - fetching the same approx 96% of your then asking price - but that price will have depreciated with the price reductions required to atract that offer. The sellers that understand that dynamic and price correctly right out of the gate - or correct very quickly if not - will sell for more - NOT less, than their overpriced peers. It proves out time and time again.
The most important thing you can do to improve your odds is to take an objetive look at your price and make an adjustment.. The first 45 days of any listing are themost important time. If you are in this period, capitalize on it. If you areoutside this time, all the more important to adjust - because the excitement for any listing drops off after the initial push.
Price is the answer Pam.
Good luck to you!
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