As you can see, I’m holding a stack of papers, and printed on these papers are absorption rates that we track week to week. To better understand the market’s state at a given time, many buyers and sellers come to us asking about supply and demand in their particular area.
Absorption rate data is divided into area, county, and the townships and cities located within them. Let’s explore how instrumental this data is in serving our clients a little further:
Last year in North Canton, there was just a one month’s supply of homes in the $200,000 to $300,000 price range. Fast forward to 2019: We now have a three-month supply of homes in that same price range. With respect to those homes, this points to a slowdown in sales and more inventory from one year to the next.
With all that in mind, we’ll advise our sellers whose home falls within that price point to yield to these conditions and to lean more toward a competitive pricing strategy.
As for our buyers, we’ll share the encouraging news that there are more homes available in that price range than there were just a year earlier. We can also show them the data for the $300,000 to $350,000 range and, in this particular case, it only gets better: Inventory jumps from a three-month supply to a 7.5-month supply.
All of this is made possible by absorption rate data, and by careful comparison and analysis, we can advise both our buyers and sellers based on the numbers for that particular week. No matter if you’re a buyer or seller, please reach out to us and let us put our experience and expertise to work for you. We hope to hear from you very soon!
