Salt Lake Real Estate Absorption Rate
September 25th, 2007 Categories: Real Estate News
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We here all different stats and news from all over the place. National News is definitely a no-no when it comes to Real Estate, because Real Estate is Local In Nature.
Absorption Rate is the amount of time it would take to sell all the current listings on the market based on the last months volume and assuming no other listings come on the market. So we take the amount of homes that are listed today and divide it by the number of homes that sold in the month of August.
The old saying Location, Location, Location is still true. Below is a table based on Salt Lake Total and then broken down in price ranges (Price usually tells of a location). Different prices (different Locations) have different stories. Obviously Salt Lakes market has an endless supply of new buyers entering the market.
To summarize the formula, take the total number of active listings divided it by a 30 day period of solds. I am using August because a lot of homes close at the end of the month and some are not reported for a week or two after. So it is safe to say that all those that have closed have been reported.
You can see that that the higher the price the softer the market. The perfect place to be right now is selling a starter home and buying a move up home. The starter homes are selling and they it starts to soften. So you can get top dollar for the starter home and make a deal on the second home, Sweet
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