Third Monday Market Update

Take a few minutes to see the large change in the number of homes and properties that have recently gone under contract in our market. If you remember earlier this month, I wrote the following…

“Many agents have stated recently the numbers of buyers is greatly increased; this opinion is based on ‘their’ activity over the fall and winter months. The important information is the number of properties being placed under contract, and then closed.”

Even though the market absorption rate continuous to increase, it seems that we may finally see the number reduce over the next few months. We have a ways to go, but these are good signs.

Thank you for your time,

Marc White, ABR, GRI, E-Pro
Marketing Specialist Broker/Realtor
Direct 828-406-2134
Marc@CedarFallsRealty.com

To see property listed on our website, PLEASE CLICK HERE Thank You for allowing me the opportunity to serve you. Absorption Rate: Again, I want to emphasize the use of the Absorption Rate versus the “normal” Days on Market approach. The days on market approach (especially for our area) changes so randomly that there are no actual predictors to show whether the market is getting better or worse. The days on market approach at the end of the year (December 31, 2009) will be at a high, while on January 15, 2010 it will be at a very small number. The reason; our days on market is for each specific listing, not each property. If you change your listing price and sign a NEW agreement, in most cases the agent has the opportunity to create a new listing, rather than keeping the listing as “older”; meaning your days on market has now started over. Absorption rate erases most of the errors that are caused by this fluctuation in time and listings. It is not exact and it requires much more work on an agent’s part to provide you with this information, but at the end of the day, the effort is truly worth the expense. *Another way to think of Absorption Rate is “Inventory”. In the automobile industry, dealerships try to keep a 75-90 day supply on-site. There are many reasons they use these numbers, which we don’t need to get into, but the information helps us to understand the Absorption Rate for our real estate industry.