How does inventory truly affect the real estate market? In a big way!!
Take a look at these two charts outlining the absorption rate for each location. FYI – absorption rate is a breakdown of how many months it would take to sell out the current inventory based on number of homes selling each month. This is important because it is the primary factor in determining if there is a rising, stable, stagnant or declining market (see graph below for more explanation).
As you can see, every location has experienced a decline in the amount of available inventory, some a very dramatic and sharp decline. This is the precursor to the next step, rising prices. It’s important we see prices rise gradually, over time, or we will experience another cycle like we saw in 2005. I don’t think anyone wants to do that over again.
Bottom line, if you are on the fence about buying or selling, jump! The market is ready for you. To strategize to your specific needs, please contact me.
