What is Hyper-local absorption rate and what does that mean to the value of your home?
One of the main factors in pricing your home as well as in how long you should expect it to take to sell is your hyper-local absorption rate. To calculate it we take all of homes sold in an area in a certain time period to and then look at current inventory so that we understand the supply and demand of homes like yours.
For example- if 60 comparable homes sold in your area in the past 12 months (5 per month on average) and there are currently 10 listings then we would say we have a 2 month supply of inventory considering it would take 2 months to sell 10 listings at the 5 house per month average rate.
So a property in an area with a 1-2 month supply can expect to potentially sell for slightly more than comparable properties as prices typically rise when demand heavily exceeds supply. If your area though has a 9 month supply you may be need to be more aggressive in pricing if the quickness of sale is important.
If you would like to know more relative to your home’s value just give me a call, send me a DM, or click here to request an in home appointment.