There Is No Stopping Buyers So Far This Winter
Despite continued weather conditions that seem inhospitable to consumer buying of any sort the Wallingford PA and Swarthmore markets have been very active this winter so far. Amid economic reports of declining retail sales due to bad weather homebuyers in the area are proving to be an exception.
A common measure of real estate activity is known as the absorption rate which measures the rate of sale of a given market’s inventory. The calculation is very simple and uses the number of active listings on the market divided by the number of listings that have gone under contract in the past 30 days. In retail this would be analogous to the term inventory turn. In real estate a rate that is below 6 indicates a seller’s market, 6 is a neutral market, and a rate above 6 indicates a market where the buyer’s are in control. So what does this measure tell us about our local markets?
Wallingford:
The absorption rate stands this morning, amid our latest winter event, at 3.9 months. There have been 19 homes that have gone under contract in the past 30 days amid 74 active listings. This portrays a strong seller market where there is a lack of inventory, and according to basic economic theory will result in higher prices – too many buyers chasing too few homes.
Listings that have the most appeal to buyers are moving quickly, 4 of the listings that went under contract were on the market 7 days or less, and even homes that have seen extended time on the market are selling as well.
A oft heard lament among agents and buyers alike this year so far has been a lack of inventory available.
Swarthmore:
The activity in Swarthmore is even more pronounced. The absorption rate today stands at 1.2 months – there have been 10 homes sold in the past 30 days amidst 12 listings. That is a rate that basically indicates homes selling as soon as they hit the market. The under contract group as a whole averaged 47 days on the market, but the 5 quickest sales were on the market 6, 8, 9, 11, and 18 days.
If you are a buyer under these conditions you should ally yourself with a local agent who knows the area well and can keep you informed of listings before they come onto the market though their networks, and be ready to act quickly on a listing that have mass appeal.
If you are a seller considering listing your home all the indicators are pointing to a market that will continue to need more inventory to keep up with the market demand, which is a situation that has not been seen for quite sometime.
The Spring Market is off to an early start and should be a very active one.
Wallingford PA Real Estate – Wallingford, PA 19086
