Moving to Norwood is a great thing. Like most areas around Cincinnati and around the country, Norwood is experiencing a buyers market.
What is a buyers market? Typically when an areas home supply goes above 6 months, it is said to be a buyers market. When it goes below 6mo then it is typically a sellers market. So how many months of inventory does Norwood have? About 10. So what
does this mean? It means that if NO other homes went for sale in Norwood it would take roughly 10 months to sell all of the homes listed. This is what realtors traditionally call “absorption rate” and how did I calculate this? Check out the side pic!
Knowing your areas absorption rate is essential in this market. The key is to price your home according to market conditions, and knowing your absorption rate will help you do this. If you’d like to know about your area’s specific absorption rate, contact me!
January 4, 2008 at 6:43 pm
I’ve seen AR calculated different ways but this is definitely the most popular. I like the graphic and the use of snapshots. Sharp!