Seller's Real Estate Market In Somerville
How is the real estate market in Somerville? Busy! To put it simply, it is a seller's market! How can you tell if the market favors buyers or sellers? You need to determine the absorption rate. The absorption rate is the rate at which the inventory of homes are being sold. Absorption rate indicates the number of months it should take to sell all the homes for sale in a specific area.
An absorption rate of more than 8 months is considered a buyer's market.
An absorption rate of between 5-7 months is considered a balanced market.
An absorption rate of less than 5 months is considered a seller's market.
Let's look at the absorption rate for Somerville:
First, we we will look the time period between January 26, 2013 and March 26, 2013. During that time period ( 59 days) there were 10 single family homes sold in Somerville.
Divide 59 (days) by 10.
That number is 5.9. That means that 5.9 homes are selling every day in Somerville.
Next, we determine the number of active homes for sale. As of today, March 26, 2013 there are 5 active homes on the Multiple Listing Service in Somerville. For this calculation I did not include homes that are listed as active but have a pending offer, there are currently 4.
Now we multiply the number of active homes (5) by the rate at which homes are selling (5.9).
10 x 5.9 = 59 days.
To find the absorption rate in months divide 59 by 30 days per month = 1.96 months.
What does all this mean? The absorption rate is Somerville is currently 1.96 months or if you list your home for sale today it should take approximately 2 months to sell. Yes, it is indeed a seller's market!
So, inventory in Somerville is low and I have anxious buyers.
Guy Contaldi helps clients find homes for sale in Boston, Cambridge, Somerville and the surrounding communities.