Murrieta CA Condo and Townhome Absorption Rates - Aug. 30, 2012

Murrieta CA Condo and Townhome Absorption Rates - Aug. 30, 2012.

Buying a house? Selling a house? Whether you’re a home buyer or a home seller, you may want to know whether it’s a buyer’s market, a seller’s market, or a stable market.

In a buyer’s market, home buyers have the upper hand and can drive hard bargains for their dream home.

In a seller’s market, sellers have the advantage and can demand top dollar for their home.

In a stable market, the bargaining advantage is balanced between buyers and sellers.

The Absorption Rate Trend chart (top) shows the twelve month absorption rate trend over the past several months for Murrieta Condos and Townhomes. When the green line is trending between 0-5 months, it’s considered a Seller’s Market. When the green line is between 5-7 months, it’s considered a Stable Market. When the green line is above 7 months, then it’s considered a Buyer’s Market. 

The Absorption Rate Per Sold Price chart (center) compares the absorption rates for Murrieta Condos and Townhomes priced below the median sold price versus homes priced above the median sold price. This chart is useful for determining how many months a home may take to sell based upon its asking price. As you might expect, the chart suggests that homes priced below the median will sell sooner than homes priced above the median. 

The Absorption Rate Per Square Foot Price chart (bottom) compares the absorption rates for sold Murrieta Condos and Townhomes priced below the median square foot price versus homes priced above the median square foot price. As with the Absorption Rate Per Sold Price chart (center), this chart also suggests that homes priced below the median will sell sooner than homes priced above the median.

Follow the link for info on Murrieta Condo and Townhome Price Trends.

Follow the link to view my list of Murrieta Condos and Townhomes for Sale.

UNDERSTANDING ABSORPTION RATES

How can you determine whether it’s a buyer’s market or a seller’s market? By looking at housing market absorption rates.