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Anderson Twp Real Estate Market – September 2020

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

New Listings

This Month

90

vs. Last Month

-7.22%

vs. Last Year

+11.11%

Closings

This Month

67

vs. Last Month

-10.67%

vs. Last Year

+21.82%

Avg. Sale Price

This Month

$339,751

vs. Last Month

+10.93%

vs. Last Year

+18.60%

Avg. Days On Market

This Month

14

vs. Last Month

-22.61%

vs. Last Year

-39.13%

Absorption Rate

This Month

37.70%

vs. Equilibrium

+21.03%

vs. Last Month

+4.89%

This month, New Listings are down moderately vs. last month, but up significantly vs. last year. Closings are down quite a bit vs. last month but up considerably vs. last year. Avg. Sale Price is up notably across the board, while Avg. Days On Market is down dramatically across the board. The Absorption Rate is at an all-time high again, for the 4th month in a row. Overall, these figures illustrate an extremely tight market, with very low inventory and strong demand.

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.