The summer is almost here, schools are finishing and houses are selling! The absorption rates for May are DEFINTELY showing signs of a stable summer market! In fact, some areas are showing signs that it’s is already a SELLER’S MARKET! So if you’re in the market to buy, THE TIME IS NOW! Rates are low and prices are only going up!!! If you’re thinking about selling, call me today and I will show you how to obtain multiple offers on your home!!
So proof do I have that the market is doing great? Well, I do monthly calculations to figure out the absorption rates. Absorption rate are a calculation of supply and demand and is calculated by dividing the total number of active sales by the number of homes sold in a month. The resulting answer let’s us know how many months it will take to sell the entire inventory of homes. I love numbers and have started to calculate the absorption rate for the DC Metro Area, more specifically, I will be focusing on Northern Virginia since that’s my area of expertise and state of licensure.
The numbers used for my calculations are from MRIS MLS and are deemed reliable but not guaranteed. Remember, real estate is local so here are the absorption rates for February in Northern Virginia:
|City of Alexandria – 4.0 mos (↑28.2%)
Arlington County – 3.5 mos (↑35.2%)
Clarke County – 13.5 mos (↓41.3%)
Fairfax County – 4.1 mos (↑29.6%)
City of Fairfax – 4.0 mos (↑0.0%)
City of Falls Church – 4.5 mos (↓24.7%)
Fauqier County – 6.6 mos (↑64.0%)
Frederick County – 7.6 mos (↑15.3%)
|City of Fredericksburg – 7.1 mos (↑3.4%)
Loudoun County – 5.5 mos (↑28.2%)
City of Manassas – 5.0 mos (↓2.2%)
City of Manassas Park – 3.6 mos (↑47.4%)
Prince William County – 4.9 mos (↑33.2%)
Spotsylvania County – 7.4 months (↓2.8%)
Stafford County – 5.9 mos (↑31.6%)
Warren County – 12.5 mos (↓9.6%)
What do these numbers mean? Typically, if absorption rate is 5-7 months, it is considered “normal market.” If it’s below 5, it’s a “sellers market” and if it’s above 7, then it’s a “buyers market.” The percentage indicates by how many months the market has improved (↑) or declined (↓).
So if you’re a seller and want expert advise to list your home or a buyer and want to roam around to find your next home, call me today at 703-577-4320!