Area Real Estate Trends
Of the many indices tracked by Real Estate Professionals, "Market Absorbtion" is one of the most important. It tracks how quickly properties are being taken off the market by Buyers versus how many properties are being listed.
Analysts can determine whether Market Absorbtion is increasing or decreasing by watching weekly changes in "months of inventory", or how many months it will take at current sales rates to absorb current inventory.
Most experts agree that more than 6 months of inventory represents a "Buyer's Market", while less than 6 months is more of a "Seller's Market".
The graph below shows weekly changes in "Months of Inventory" by price range for Residential Property in Highlands County. The dramatic "spike" that you see in the weeks of Christmas and New Years is typical of our market. Few properties typically go under contract during this time, however people do continue to list their properties for sale. We typically see our inventory trend down beginning the first weeks of the new year. It is unclear why the $200K to $250K price range spiked so dramatically in March and April. There are a large number of properties in Highlands County that fall into that range and it seems many more properties were being listed that sold. Normally our winter residents head back north at that time and some list their property before leaving. However, note that the inventory fell just as sharply as we entered May. (Please note that this data is derived from the Highlands County Multiple Listing Service, and while the information is considered accurate it is not guaranteed.)
Days on Market
Another closely watched statistic is "Days on Market", which is a measure of how long properties stay on the market on average before being sold. This figure normally includes the period that a property is "under contract". Thus, if a a Buyer and Seller come to agreeable terms on a property that has been listed for 90 days for example, and then 30 days later the transaction closes, then the "Days on Market" would be 120.
The graph below shows the Days on Market trend over the past several years. Note that the average number of days on the market has increased dramatically since 2005, and is now greater than the average time on the market in 2002, before the local real estate market heated up. Properties that are priced to sell and heavily marketed will beat these averages. TeamFruit's exclusive marketing plan has proven effective in getting our client's properties sold!