Ever heard the phrase absorption rate in real estate? Put simply, the absorption rate is a measure of supply and demand. By taking the number of properties sold in a month and dividing it by the number of properties for sale, we can gauge how long it might take to sell ALL available properties on the market.
Along Scenic 30A, the current estimate to sell all available properties is just 2.08 months compared to just 1.04 months this same time last year. Could this be a sign that sales are starting to slow down?
This week we looked at available inventory a bit differently for a fresh perspective on where our market is headed. We normally report on the number of new listings entering the market, but what about the other active listings, the ones carried over from previous months? Are those selling or sitting on the market? Going back to May of 2021, we looked at the changing composition of properties carried over from previous months and new listing activity.
New listings (orange bar) do what they typically do, which is taper off in the cooler months and pick back up again in the spring. But the carry-over listings (blue bar) are trending downwards, meaning properties are selling almost as quickly as they come onto the market.
We also looked at the average days on market, particularly for homes along Scenic 30A. In 2021-YTD, homes lasted an average of 40 days on market. So far in 2022-YTD, homes are moving twice as fast, spending just 20 days on the market!
Outside factors, such as rising interest rates, talk of recession, rising oil prices, and other reasons could impact sales trends later this year, but for now, we’re seeing properties continue to move even faster than this same time last year.
Summer is Selling Season at the beach! If you have an interest in selling, please reach out for a customized property valuation consultation. No obligation. No commitment. And no pressure… we promise!
Posted by Jamie Conley on
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