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.
Looking at Daly City take another dramatic dip in inventory – from 8 months to 2 - makes me want to take a look at these numbers over the previous months of 2008. That’ll give a closer look at the direction of the market – perhaps less dramatic because we’ll be able to see the inventory decline a bit at a time instead of this amazing switch.
Pacifica is another market heading in a less volatile direction as well - its inventory cutting in half.
Redwood Shores has taken a huge hit jumping from 1 month to 16 months’ – holy cow. Woodside has doubled from 8 to 17 months’ year to year.
|Half Moon Bay||6.25||6.86||3.14|
|South San Francisco||2.74||9.76||3.43|
Got a San Mateo County real estate question? Call me at 650.888.9268 or send me an email Vicki [at] CallVicki.com. If you like what you’ve read, subscribe to the San Mateo Real Estate Blog feed.