What’s Selling – and What’s Not – in Bridgewater MA in January 2012
On average, homes for sale in Bridgewater MA in January 2012 are on the market for 112 days before they are sold. However, homes in some price ranges don’t take as long to sell as compared to homes other price ranges.
The absorption rate is the ability of the real estate market to absorb or sell all of the houses for sale in a given amount of time. That means it’s the rate at which available homes are sold in a specific real estate market during a given time period. In other words, the figure shows how many months it will take to exhaust the supply of homes on the market if no other homes were listed for sale.
The higher the absorption rate (or the less the number of days homes are on market), the higher the probability that the supply of available homes will shrink rapidly. When the absorption rate is high, a homeowner can sell his or her home for more money in a shorter period of time. When the absorption rate is low, a home buyer will have a larger inventory of homes to choose from, and may be able to buy a home for less money.
· 1 to 4 months supply of homes – has a high absorption rate. This is a Sellers’ Market.
· 5 to 6 months supply of homes – has a normal absorption rate. This is a Normal Market.
· 7 or more months supply of homes – has a low absorption rate. This is a Buyers’ Market.
Below is a chart of the number of days single family homes are on the market in Bridgewater MA until sold:
As the graph shows, the following are the number of days the average home for sale in a given price range is on the market before sold:
- $100k - $150k: 131 days on market (Normal Market)
- $150k - $200k: 119 days on market (Normal Market)
- $200k - $250k: 116 days on market (Normal Market)
- $250k - $300k: 113 days on market (Normal Market)
- $300k - $400k: 159 days on market (Normal Market)
- $400k - $500k: 112 days on market (Normal Market)
- $500k - $750k: 38 days on market (Seller’s Market)
So what does all this mean?
A snapshot of the number of days homes are on the market in a given price range before sold (or the absorption rate) gives both home buyers and home sellers a better idea on how to negotiate the purchase or sale of a home.
Lowball offers won't cut it in a market like this. And except for homes selling above $500,000, sellers aren't in control of the market either. So both buyers and sellers should be reasonable when negotiating the purchase and sale of a home.
Be sure to contact me, Lew Corcoran, toll free at 1-800-941-5616, if you're looking to buy or sell a home in Bridgewater MA.