Newton, MA single family residence market report August 2011 – Absorption Rate
There are currently 212 single family residences listed for sale in Newton, MA according to the multiple listing service data (MLSPIN). Any agent can use their broker’s online tools or MLSPIN tools to create an absorption rate report.
To review, the absorption rate is a calculation of how many months of housing inventory are on the market based on historical rates of sale per month and the current housing inventory. What this tells us is how long it would take to sell all of the houses currently on the market if no new houses came on the market. This is useful as an indicator of the state of the market.
A Seller’s market is considered to be 1 to 4 months supply of housing
A Neutral market is considered to be 5 to 6 months supply of housing
A Buyer’s market is considered to be 7 or more months supply of housing
We have discovered in our area that all of these reports are incorrect. Not by much, but still off. The reason for this is that 18 of those 212 single family residence listings are actually condos.
The MLSPIN allows brokers to list condos in two separate listings: one as a condo, and one as a single family residence. When the condo sells the listing as a single family residence is cancelled. The table below shows the data from the MLS and the corrected data by removing condos from the single family residence numbers.
|
Price Band |
Sold in Prior 12 Months |
Current Inventory |
Months of Available |
Condos listed as SF |
Months Available without condos |
|
under 100K |
0 |
0 |
0 |
0 |
|
|
$100K's |
1 |
0 |
0 |
0 |
|
|
$200K's |
6 |
0 |
0 |
0 |
|
|
$300K's |
23 |
6 |
3.13 |
0 |
|
|
$400K's |
59 |
16 |
3.25 |
1 |
3.05 |
|
$500K's |
58 |
29 |
6 |
4 |
5.17 |
|
$600K's |
62 |
26 |
5.03 |
3 |
4.45 |
|
$700K's |
67 |
28 |
5.01 |
3 |
4.48 |
|
$800K's |
37 |
15 |
4.86 |
1 |
4.54 |
|
$900K's |
36 |
11 |
3.67 |
2 |
3.00 |
|
$ 1M - 5M |
157 |
79 |
6.04 |
1 |
5.96 |
|
$ 5M + |
0 |
2 |
0 |
0 |
Melville
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