Kenilworth IL Real Estate Absorption Rate - May 2014

By
Real Estate Agent with Baird & Warner Real Estate

The absorption rate is one tool that a real estate agent can use in helping a seller to better Kenilworth IL Absorption Rateunderstand their local market.  

By using a particular time period, in this case the past 6 months, and comparing the number of sold homes in that time period with the number of current listings, the absorption rate can be identified.

And what is absorption rate?  It identifies the rate at which a market absorbs (sells off) the inventory.  If the market does not change and no new listing come on, the absorption rate tells you how many months it will take to sell off the current inventory.  It gives you a sense of the pace of the market.

Using data for the past 6 months (November 13,2013 to today, May 13, 2014) the absorption rate for Kenilworth is 17.6 months.  

Absorption rates can be identified as:

0-4 months - seller's market

5-6 months - steady market

6+ months - buyer's market

This does not mean that your Kenilworth house for sale will take 17 months to sell - but it does indicate a buyer's market.  And it could mean a long wait and price adjustments along the way.

Posted by

Margaret Goss - Winnetka and North Shore Real Estate Broker
Specializing in homes for sale in Winnetka, Wilmette, Kenilworth, Northfield, Glencoe, Glenview, Northbrook, and Evanston.

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Rainmaker
3,144,029
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Margaret - Thank you for the comprehensive data on real estate absorption rate Kenilworth, Illinois May 2014.

May 13, 2014 10:41 AM #1
Rainmaker
699,833
Patty Da Silva, Davie, Southwest Ranches Cooper City, Plantation, Weston, REALTOR
BROKER of Green Realty Properties® - 954-667-7253 - Davie, FL
Top Listing Broker

Hello Margaret. I hope all is well. Great post. Thanks fo sharing :)

May 15, 2014 03:36 AM #2
Rainmaker
1,283,489
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Margaret:  Buyers and Sellers always see professionals and media using the jargon of our industry.  I think sometimes we forget that, while we may know and use the terminology, they are not aware or may not understand what it all means.  Your post regarding absorption rates addresses that very well and helps to educate ...

Gene 

May 17, 2014 05:11 AM #3
Rainmaker
730,019
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Margaret-Helping the Sellers understand true market conditions helps establish reasonable expectations.

May 19, 2014 09:25 AM #4
Rainmaker
1,682,389
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

Good morning Margaret, Thanks for explaining absorpton rate. Have a great week in Chicago's North Shore.

May 25, 2014 12:23 AM #5
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Margaret Goss

Chicago's North Shore & Winnetka Real Estate
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