April 2011 Market Absorption Report
REAL ESTATE Market Report
“Buy” the Numbers
Click The Link Below to View a Full Market Analysis as of April 12, 2011
http://root.z57.com/filemanager/uploads/e/b/eb9e21ff-c76a-acee-2788167d3e15aa80.pdf
Make an educated and informed decision about, what will quite possibly be the largest investment that you will ever make. It pays, as a Buyer or a Seller, to be informed about the "market conditions" you are going to buy or sell in. As a real estate professional, I pride myself on being well informed on the status or current condition of our Real Estate Market.
THESE REPORTS WILL GIVE YOU GREAT KNOWLEDGE ABOUT WHAT IS HAPPENING IN THE REAL ESTATE MARKET RIGHT NOW IN THE TRI CITIES OF WASHINGTON
CAUTION: CAUTION
First of all, these reports contain valuable, rare information generally NOT given to the public and are for Buyer’s and Seller’s ONLY.
If you are another real estate agent, please do not access these reports for your own use.
How to use these reports:
The data is obtained from the Tri City Multiple Listing Service or MLS which combines all of the data from homes sales and listings of ALL real estate companies in the Tri City area.
To read these reports, you just need a little background on some terms and some explanation of where I get the data. The terms that you will need to know are:
Terms:
1. Absorption Rate or Absorption Ratio: This is quite simply the amount of homes we have in supply in the given field of data or the Months Supply there are left. For example, if the Absorption Rate of a Rambler in Kennewick is 2.69, then that means there are enough homes to fulfill the market at the going sales rate for 2.69 months.
2. Sales Ratio or Sales Rate: This figure is defined by the amount of homes going “under contract” in a certain field. For instance, if there are 100 Ramblers available in Kennewick and 35 are under contract, or obtain a purchase agreement from a Buyer, then there is a sales ratio of 35%.
Sales Ratio’s determine what the market is doing at any given moment:
A simple table will give a visual picture of the formula:
Sales Ratio:
Buyer’s Market 0-45%
Balanced Market 45-55%
Seller’s Market 55-100+%
As a Realtor, I am not to interested in homes that have recently Sold because that lets me know what happen in our market sometimes up to 3 months prior. I like to use pending sales because that is the best determination of where our market is right now.
The info you will find in here are the Absorption Ratio, Months Supply, and Sales Ratios of homes in Richland, Kennewick, and Pasco broken down into these catagories: Location, Price, House Style, and Square Footage.
How could this be a good thing for you?
As a Seller: This is one of the most comprehensive market analysis' that you can get. This allows you to see where your home needs to be priced and what homes are selling in your city. It also will let you know how long it should take to sell your house so that you can make plans toward your next home.
As a Buyer: This is a great tool to use when you are looking for homes. If you see that the homes you are looking for are selling quickly, then it might be a great idea to make a strong offer because chances are, there is someone else out there potentially looking at the same property. On the other hand, if the house you are interested in has a very high absorption rate and low sales ratio, then your chances of obtaining a better deal for the house might be increased.
I hope that you find these reports useful, I know I do! If you have questions about how to read it and understanding what the numbers might mean for you, please do not hesitate to email or give me a call, I would be happy to help!
Thanks for you interest in what I do, I hope to hear from soon!
Brian Mounce, REALTOR
RE/MAX First Advantage
509-531-3548
The Market Analysis of the Tri Cities!
View Past Reports:
You will need Microsoft Excel to view some these reports.
February 2008
http://root.z57.com/filemanager/uploads/6/7/6754998b-df26-bbce-0d3ba8d0cdce8811.pdf
December '06 Reports
http://root.z57.com/filemanager/uploads/5/f/5ff7876f-9ca0-aae0-445d76806402e73d.xls
September '06 Reports
http://root.z57.com/filemanager/uploads/5/3/536596bd-b19c-8fc1-f6a73fc67c5b8eda.xls
MAY '06 Reports
http://root.z57.com/filemanager/uploads/s/n/sn6ecqodz7e_NEWFILE.xls
JULY '06 Reports
http://root.z57.com/filemanager/uploads/b/1/b1264f07-b60f-4fe6-bdda46fc66270c61.xls
