Our MLS provider, MLSListings.com, has not yet given us the statistics for September's closed sales in Silicon Valley, so I've done a little of the data work myself. Below, please see a graph displaying the "months of inventory" or "absorption rate" for Saratoga, California.

Absorption rate for single family homes in Saratoga, CA in 2008 YTD

The National Association of Realtors uses 6 months as a benchmark for when it flips from one type of market to the other. Less than 6 months is considered a sellers market, and more is a buyers market. Saratoga real estate is very pricey and offers fantastic schools with exceptionally good API scores, so this area is nearly always in demand. While these numbers may be viewed favorably on the national scale, having more than about 4 months of inventory among single family homes feels like it's a buyers market. 

It really depends on the home, location, condition, and marketing/pricing as to whether a home will really take 5 months to sell. The best homes will go in 3-4 weeks, despite the average numbers.

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3 Comments on Saratoga, CA Months of Inventory for Single Family Homes

OCT
05
2008
3 Featured Posts

Mary - Posting this info before your MLS even makes the stats available is just one more great "value add" that you provide.  It gives your clients and blog readers access to info before their competitors.  Getting a jump on this info can be very helpful for potential buyers and sellers.  They may be able to spot trends just a bit before everyone else does.

If I were looking to buy or sell a home in the Los Gatos area, there would only be on Realtor on my list.

10:23am • #1
121,914 Points 22 Featured Posts Outside Blog

Thanks Al :)  It's not that hard to do. All you need is the amount of inventory on the last day of the month (available homes, not those sale pending) and the number of closed sales that month, which is an easy number for most of us to obtain. My MLS doesn't do the absorption rate but you just divide the inventory by the number of sales in the month for the figure. I'm a visual person so seeing a chart helps. Credit for my knowing about Create-a-graph (which is easier than doing it from Excell) goes to Ardell DellaLogia.)

10:34am • #2
3 Featured Posts

Mary - Gotta love the modesty, and in your case I know it is genuine, but...

Even though you think doing a few simple calculations is not that hard, how many agents take the time to post this information at all?  Not a lot.  And then, how many take the time to figure out the absorption rate and post it?  Most agents, if they do post market stats at all, will simply do a cut and paste from the MLS.

You go the extra mile and you have to own that fact.  It's not such a bad thing.

Enjoy the rest of the weekend.

 

10:50am • #3

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Mary Pope-Handy, ABR, CRS, ePRO, SRES

Los Gatos, CA

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Luxor Real Estate Group

Address: PO Box 440, Los Gatos, CA, 95031-0440

Office Phone: (877) 397-5391

Cell Phone: (408) 204-7673

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A discussion on the real estate market and practice, particularly in Silicon Valley, CA.











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