February brought a nice upturn after a couple of months of slow activity. As we discussed last week, sales were strong and pending sales are good. How about inventory? I’m glad you asked.
Inventory
Inventory was down in February, with 928 single family units on the market for sale. Looking at the graph, inventory has remained fairly steady since fall. We could stand to shed 100 or so listings, but as long as the number doesn’t start going back up again, the market will be ok.
Absorption rate
The absorption rate for March is up to 12.16 months. Because we use a three month rolling average of sales to figure absorption rate, the lower number of homes on the market last month had little effect. Using a three month average helps smooth out the ups and downs of the market, and gives a more accurate picture of what is happening.
Inventory and absorption rates can vary between different areas around Dothan. If you would like to see these numbers for a particular area, drop us an email or leave a comment below with your request!
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