Hobe Sound Absorption Rate Improves Nicely in February

Hobe Sound Absorption Rate Still Points to Buyers Market

Month after month pending home sales are one metric we have watched closely to help us determine where sales may be heading in the upcoming months. With so many short sale transactions that sit as contingent for what seems an eternity and with some buyers having multiple contracts at the same time just hoping one of them comes through the validity of these numbers remains in question. We need to watch closely the homes that go under contract each month so we have decided to change from tracking pending home sales and start bring our readers the latest absorption rate in each community.

The absorption rate is perhaps the easiest way to understand the market conditions in any given area and we will now track this metric the middle of each month instead of the pending home sales. The absorption rate in these articles will give the absorption rate in months and is simply the number of months the market will take to “absorb” the current inventory based on the sales level during the preceding month.

For our first report the absorption rate in the communities we track the numbers are in and here are results for February;

Jupiter –
Juno Beach –
Palm Beach Gardens –
Hobe Sound – 15.09 months
Tequesta 15.86 months

Our 4th place finisher weighing in with an absorption rate of 15.09 months which means that is how long the market will take to absorb the current inventory based on the sales volume during that past month. It is important that we watch the trend of this number to give us an idea of how much the market is improving, or declining. Over the past year the average monthly absorption rate has been running at 14.05 so we are running about 1 month behind that average.

Again the absorption rate provides us a mathematical representation of the relationship to supple and demand and when paired with our monthly look at inventory changes and sales paints us a good picture in which direction the market is headed. We typically describe a buyer’s market when the absorption rate exceeds 7 months so overall we are still in a buyers market. With that being said for different product types within a market will tell a different story for each property. For instance a single family home priced at $325,000 in one community will have a completely different absorption rate than a $189,000 townhouse a few miles down the street.

The absorption rate is just one more valuable tool to assist both buyers and sellers in making knowledgable decisions and a great tool to better understand the local real estate market.

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Tom Priester

After spending years among the top individual performers at one of Palm Beach County’s largest and most successful real estate brokerages, Tom Priester knew there was another way to do real estate. A better way. Real estate services focused on the customer. Like the old days when the customer truly was #1. He tired of listening to why he should be going out to have his customers sign one sided buyers’ brokerage agreements. He tired of hearing how he should be selling customers why paying higher commissions, like 7% and 8%, was to their benefit. He tired of hearing how he should sell his clients on why they should be paying hundreds of dollars in additional “transaction fees”. The business had slid way too far from being focused on the customer. His customer. So he decided the time was right to be different…..by design. To start his own unique boutique real estate firm truly focused on his customers. They will now have access to a process focused on them. Only the best marketing techniques to sell their homes. No cutting corners. Commission structures based on his clients needs not his. Paradise Sharks was born out of Tom’s passion to return this business to the customer. Where it belongs. If you want a real estate experience that benefits you, just give Tom a call at 561 308-0175 or send him an e-mail at tom@paradisesharks.com. You can always pay more and receive less but that just would not make any sense. Would it?

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