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Anderson Twp Real Estate Market – 3rd Quarter 2020

by | Oct 2, 2020 | Market News, Real Estate

New Listings

This Quarter

301

vs. Last Quarter

+23.87%

vs. Last Year

+14.89%

Closings

This Quarter

242

vs. Last Quarter

+39.88%

vs. Last Year

+4.76%

Avg. Sale Price

This Quarter

$326,054

vs. Last Quarter

-3.50%

vs. Last Year

+5.16%

Avg. Days On Market

This Quarter

15

vs. Last Quarter

-37.79%

vs. Last Year

-42.31%

Absorption Rate

This Quarter

37.70%

vs. Equilibrium

+21.03%

vs. Last Quarter

+10.79%

This quarter, New Listings are up significantly vs. last quarter and vs. last year. Closings are up dramatically vs. last quarter and up moderately vs. last year. Avg. Sale Price is down a little vs. last quarter but up moderately vs. last year. Avg. Days On Market is down dramatically across the board. The Absorption Rate is at an all-time high again, for the 2nd quarter in a row. Overall, these figures illustrate an extremely tight market, with very low inventory and strong demand.

Although the market is extremely tight right now, it’s encouraging for buyers to see a significant increase in New Listings vs. last quarter and vs. last year. Weekly and monthly figures for New Listings have regularly dropped several points throughout 2020. Of course, New Listings tanked shortly after the COVID-19 outbreak and resulting quarantine, but they appear to have rebounded well. However, the Absorption Rate shows that we have lost an entire month’s worth of inventory since last quarter!

The Absorption Rate is a lesser known figure to the general public, but it may be the most important one. It factors in active & pending listings (current inventory), along with the average number of listings sold per month over the past 6 months. The resulting figure is the percentage of current inventory sold each month. Our current Absorption Rate of 37.70% can also be expressed as a 2.65 months’ supply of homes. This rate is 21.03% higher than the market equilibrium rate of 16.67%, or a 6 months’ supply of homes. When the absorption rate is higher than 16.67%, the market conditions favor sellers. When it’s lower than 16.67%, buyers have the upper hand.