Saturday, April 22, 2017
I’ll be honest! Before I undertook this statistical evaluation of real estate activity on Tierra Verde so far in 2017, I had the impression our market was sluggish compared to the first quarter of prior years. What I learned was that first quarter 2017 has shown a marked improvement over performance in the first quarter of 2016.
As you can see from my chart below, so far this year we’re doing better than last year’s first quarter but we are lagging behind the first quarter of both 2015 and 2013 in terms of closed sales.
But there is more to the story than only total numbers of sales. We should consider the “absorption rate” too. The absorption rate tells us that if the current rate of sales continues (based on activity over the prior 12 months) and no new listings enter the market, how many months it would take to sell the entire inventory of homes on the market at that point in time.
As you can see in my chart above, the rate of housing inventory absorption (i.e., the number of months it would take to sell all residential properties currently on the market in Tierra Verde) is substantially better than what we were looking at last year at this point. An in the last five years only the first quarter of 2015 performed better and had a more robust absorption rate than this year.
If you are on the fence about listing your home for sale, give me a call and we will evaluate your specific situation together.
Dan Reichard, Realtor ®
Smith & Associates Real Estate