Tuesday, November 25, 2014

Residential Real Estate Absorption Rates in Brevard County (November 2014)

Absorption rate is one of those terms real estate folks use to describe local market conditions.  Basically this rate describes the market as to whether the advantage falls on the side of buyers, sellers or neither.

In its most simple terms absorption rate refers to supply levels.

Most real estate professionals agree that a 6-9 month supply level is a balanced market with neither buyer or seller having the advantage.  Once the supply level equals or exceed nine months the shift becomes a buyer's market.

On the other side once the supply level drops below six months, sellers have the advantage. And when the level sinks to three months or less sellers find themselves in their strongest position.

Where does Brevard County, Florida stand as we near the end of November 2014?   The latest data provided shows the residential real estate inventory at 3.0 months supply in October 2014 (compared to 4.5 months in October 2013).

So what does a buyer or seller do with this information?

Buyers must understand the competition for the most desirable properties will be keen. Looking to buy a house with a low ball offer is not a good strategy.

For sellers the rule is the same... a move in ready home that presents well will command a higher price and stimulate competition among buyers including multiple offers.

Real estate is all about timing and the timing is good for those selling their Brevard County, Florida home in 2014.