One of the most overlooked aspects in selling homes, I believe, is the absorption rate or the ability to sell off all the homes in a region that are currently for sale. It is tallied in a relatively simple manner- even for non-stat nerds (which I, unfortunately, am NOT a part of)...
Take the number of homes that have sold in an area over a period of time (6 months, one year, whatever). Divide it by the amount of time (six months by 6, one year by 12 and so on). That will give you the amount of homes that sell per month. Divide number of homes currently for sale by the amount of homes that sell per month and you will find out how many months of inventory are available.
Coal City/ Diamond/ Carbon Hill's detached homes for 5-18-08:
83 sold in the last 12 months....or 6.9 per month
88 active listings...or 12.8 months of inventory available
Coal City/ Diamond/ Carbon Hill's attached homes for 5-18-08:
17 sold in the last 12 months....or 1.4 per month
15 active listings...or 10.7 months of inventory availabe
** Now with this being ALL detached or attached homes in Coal City, Carbon Hill and Diamond, you'd want to be more specific as to the type of home, town and subdivision and even other factors to get more specific absorption rates for the type of property you are selling- this was a VERY broad example as to how to calculate. Many neighborhoods and styles of home are selling quicker than the current absorption rate and your house may be one.....
What is DOES SHOW is the importance of having a REALTOR that puts a heavy influence on pricing correctly. Remember, you hire me not only as a marketing and negotiating specialst- but also (and equally important) a PRICING SPECIALIST.