Lee county absorption rate for October 2010

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
       36 weeks

$100, 000 to $200,000
        43 weeks

$200,000 to $300,000
         63 weeks

Gulf Access any price range

           21 weeks

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



Absorption rate and how it affects you.

Cape Coral’s real estate market has been less than predictable in recent years; we have had our share of ups and downs.  As real estate professionals there are ways to track the markets progress and predict the changes to come.  This prediction comes in the form of
absorption rate.   The absorption rate is the rate in which the market absorbs and eliminates inventory. We have broken down Cape Coral price brackets and what it means to buyers and sellers.

Homes in Cape Coral with a price ranging from $0 to $150,000 have turned over 4.5 times in the past 12 months and currently, we have 2.6 months of inventory available in that specific price range.

Homes in the price range of $150,000 to $200,000 have turned over 2.3 times in the last year and the current inventory is 8.5 months.

Gulf access homes in Cape Coral at no specific price point, in the last year have turned over 1.4 times with an inventory of 8.5 months.

What do months of inventory indicate? Typically 1-4 months of inventory indicate a seller’s market, 5-6 months is generally a balanced market and 7 months or more points toward a buyer’s market.

How does this information specifically relate to buyers and sellers of Cape Coral real estate?


The absorption rate is very important to know. Since it tells something about how long it might take to sell the home.  A higher number of inventory typically means more competition from other sellers.  A lower number may indicate that we are in a seller’s market, so the need to make sure your marketing strategies are “spot on” is detrimental to a quick sale.  Good marketing will insure your home will be displaying a sold sign before you neighbors.


Buyers also need to be aware of the absorption rate.  If the market is shifting into a time of low inventory, it isn’t the time to be throwing out “low ball” offers hoping to get a good deal. 
 When inventory is low and buyers have increased, chances are the buyers will be introduced to a situation where the home has multiple offers.  When inventory is high your chances of getting a “steal” have increased significantly.

Buyers and sellers who pay attention to the changes in the market will be more informed and can make decisions accordingly.  Most important whether buying or selling real estate in Cape Coral it is important to work with an experienced agent to help you calculate the
absorption rates for the homes that you are interested in.  

*This blog was written 6-22-10 all calculations are subject to change, for accurate up to date information please call a speak with our knowledgeable team members.

Yours in Success,

The Florida Future Realty Team