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INTERPRETATION OF STATISTICS
The absorption rate informs you about the general state of the market with a reasonable expectation of how quickly your home would sell.
This number is determined by the total number of sales divided by the total number of listings.
A balanced market is between 18% to 22%.
Here are some recent figures for single family dwellings. (This rate is not the same for all types of listings.)
September, 2009: 19.3%
October, 2009: 21.2%
November, 2009: 20%
December, 2009: 22%
January, 2010: 12%
The low rate for January is a result of the large number of listings that come onto the market at the beginning of the year. The total sales were down as well. This trend continues in February, 2010. This would indicate a bigger choice of listings for buyers.
NEW SALES TO NEW LISTINGS RATIO:
This number reveals market activity. A HOT market is 70%, whereas a low market is 30%. In a low market, the public thinks nothing is selling.
September, 2009: 67%
October, 2009: 62%
November, 2009: 85%
December, 2009: 82%
January, 2010: 46.8%
February, 2010: 42%
April, 2013: 46%
As you can see, sales have dropped compared to December and November of last year when the market was red hot!
HOUSING PRICE INDEX:
In the year 2005, the housing price index was re-set at 100. This number’s only value is as a ratio. In April, 2013, the housing price index was:
A house purchased in 2005 for $100,000, would now be worth approximately $128,800 today! These numbers can give you a realistic expectation of what your home is worth in today’s market.