Absorption rate – How quickly is the market absorbing those homes that are for sale? How much inventory is out there? If I am selling, how long will my house be on the market. Here is what the numbers are for Naperville as of Mid-August:
|
Area |
Homes Absorbed |
Newly Listed |
Inventory |
Weeks Inventory |
DOM |
|
60540 |
25 |
15 |
394 |
15.8 |
228 |
|
60563 |
10 |
11 |
188 |
18.8 |
247 |
|
60564 |
24 |
11 |
363 |
15.1 |
218 |
|
60565 |
16 |
6 |
231 |
14.4 |
193 |
|
Naperville |
75 |
43 |
1176 |
15.7 |
|
At the current rate of sales we have almost 16 weeks of inventory on the market, according to the standard calculation. If that is true, why are DOM (Days on Market) more in the 7-8 month range? Here is where I look at Net Absorption rate: Inventory/(Homes Absorbed – New Listings). This calculation yields a number in the 8.5 months rage which tracks with the DOM.
In answer to the question posed above regarding how long one could expect to have on the market, the answer, for an average home in the current market is around 8.5 months. Not average? Want to sell quicker. Look for my next post on how to prepare your home for selling in today’s market.
