First up, the number of listings,
March 2011 - Feb 2012
Next, the Absorption Rate. Another way of saying- months of inventory – MOI - how long it will take to sell all the homes currently on the market at the current rate of sales, assuming no new listings – considered by those in the know to be a key indicator of the health of the market.
Approx 6 months of inventory considered a balance market. We’re dangerously close.
And finally, Days on Market (DOM) & Cumulative Days on Market (CDOM).
The difference is that if a home was listed and then taken off the market and then relisted (within 30 days) CDOM includes the accumulated days from the 1st and 2nd listing, and the 3rd if there is a 3rd, until the time it goes to contract.
While DOM resets every time a home gets taken off the market and relisted.
Does that make sense.
And notice the rather large gap between CDOM - the real indicator of how long it’s taken for homes to sell - and the-pie-in-the-sky DOM. Though that too has narrowed in the last few months.
As you can see everything is trending down (which in this case is not necessarily a bad thing, though it would be nice to have a few more listings to choose from) – there’s less inventory, the absorption rate is down and CDOM has recovered from those sluggish days of late last summer.
These charts are showing us that the market is improving, getting stronger - (though how you see it may depend on whether you’re a buyer or a seller) - lower inventory puts sellers in a stronger position and buyers in a weaker one.
And little by little it is becoming less of a buyers market and more of a balanced market.
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