2008 Oct 27th

Atlanta Real Estate Market Absorption 12 - 16 months

Categories: Absorption Rate, Atlanta Real Estate News, Buying, Market Conditions, Selling Your Home

 

The Atlanta Real Estate Market has historically been a SELLERS’ Market. It could be said it’s been a strong SELLERS Market for about the last 10 years, that is up until the shift. It’s been a shock to many Atlantan home owners who are selling in a BUYERS’ Market. How did this happen? The answer, in two words or less…market absorption.

Market absorption measures the number of properties currently on the market and the average market demand…how long will it take to deplete the inventory of those properties. The absorption rate is a simple equation that holds volumes of information for both Sellers and Buyers.

To learn the Absorption Rate… 

  1. Determine the rate at which properties are selling: Properties Sold in Previous Year / 12 months = Monthly Absorption Rate

  2. Take a snapshot of current inventory based on that rate: Properties Currently For   Sale / Monthly Absorption Rate = Months a Typical Property Will Take to Sell

How is the Real Estate Market defined?

  • SELLERS Market ‹ 5 months of inventory

  • Transitional Market ≤ 7 months of inventory

  • BUYERS Market › 7 months of inventory

Currently, metro Atlanta has between 12 and 16 months of inventory. We have more supply than demand and that makes us officially in a Buyers Market.

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This entry was posted on Monday, October 27th, 2008 at 5:12 pm and is filed under Absorption Rate, Atlanta Real Estate News, Buying, Market Conditions, Selling Your Home. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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