I got a little behind in posting. When I get busy the first thing to go is the blog. But it looks like Adam Lambert is going to win American Idol so it doesn’t matter.
Interesting that the inventory in the high-end areas like Hillsborough and Atherton is way up while the first-time buyer inventory is seeing a pretty sharp decline.
|East Palo Alto||3.4||2.8||11||1.6|
|Half Moon Bay||1||2||3.8||11|
|South San Francisco||1.5||2.5||6.9||1.7|
The absorption rate is a quick way to see if the number of homes for sale in San Mateo County is going up or down. It’s just one of the statistics used to evaluate pricing.
What you’re looking at is how many months’ inventory there is on the market. The assumption is that it will take X number of months for all of the houses currently on the market to sell. More inventory = longer to sell.
You can also see if the area is a buyer or a sellers’ market. The National Association of Realtors defines a balanced market as one is which there is 6 months of inventory. More than 6 months, it’s a buyers’ market; less is a sellers’ market.