As buyers and sellers, we often look to our realtors for advice on current market conditions, recent changes and often times predictions into the future for what changes we believe will be coming. It is accurate to say that home prices have fallen significantly over the past few years and foreclosures and short sales have become more prevalent. Realtors now more than ever need to correctly price your home to compete with the huge amount of inventory currently on the market today. One helpful calculation many realtor use is absorption rate; it really puts into perspective what is going on in the market with each price range of residential properties. Whether you are planning to buy or sell this simple formula can give you and
your realtor a great indication as to where to list your home or what price to offer for a home.
We have broken down the different price ranges and calculated the absorption rate to give you an idea of the current conditions of the market in Lee county Florida.
Absorption rate is the number of weeks it takes to sell the current inventory at the present rate of sell.
$100,000 and under
$100, 000 to $200,000
$200,000 to $300,000
Gulf Access any price range
So what does this all mean? Well It means that if you are interested in selling your home the greater number of weeks indicates the amount of competition you will face. Sellers need to be very aware that pricing their property correctly may result in a faster sale.
If you are buying; the larger number of weeks worth of inventory could indicate how negotiable the sellers may be, or how flexible they may be concerning sales price and terms.
As always if we can help you with your buying or selling needs, please don’t hesitate to call. We look forward to hearing from you.
Yours in Success,
The Florida Future Realty Team