Knowing the absorption rate of a particular neighborhood or price range is a great help in determining what you should sell or buy for. Pretend that no new listings come on the market - then the time it would take for everything currently on sale to sell is your absorption rate.
The number of months to sell all the current inventory gives us a good idea of the rate at which buyers are purchasing. It can also tell us whether we have a seller's, buyer's, or balanced market.
Here are the absorption rates for various types of parameters:
I have been writing for a long time about how hot Wilmette real estate is. With the exception of homes priced over $2 million, all segments of the Wilmette real estate market are a seller's market. In fact, it is probably even more so since there are a number of off-market and off-MLS listings that are sold.
To illustrate, I called a Wilmette client yesterday who indicated she was going to list her house in the spring. I wanted to follow up with her and she told me an interesting story. She had mentioned to several neighbors her thoughts about selling, and within several days, four sets of buyers showed up on her doorstep wanting to buy her house!
If you are selling a home in Wilmette you are in a good spot right now. If you are interested in buying, make sure you find a good agent who has access to ALL listings, not just those in the Multiple Listing Service.