3rd Quarter 2016
Average Days on Market = 125 Days
List Price to Sale Price = 98% of List Price
Absorption Rate (3 County Area) = 6.3%
Geographically Active Markets = Grand Traverse County, Benzie County
Average number of Transactions per month (3 county Area) = 255 Transactions
The third quarter statistics for the 3-county area revealed some really interesting market information. The average days on market for the area stays pretty consistent at 125 days. This will change through different price ranges and locations. The majority of these transactions are sold at 98% of their list price, which is typically seen in a stronger “Seller’s Markets”.
The absorption rate of an area is a very important statistic to know because it helps Realtors verify what type of a market is currently being experienced by an area. The Absorption Rate is equal to the average number of listings sold in a market place on a monthly basis, divided by the number of listings that are currently on the market. By doing this calculation you can get verify the time (in months) the currently listed properties will take to sell. By knowing this absorption rate, you can determine if the community is experiencing seller’s market, or a buyer’s market. A seller’s market will typically have less than 6 months of and absorption rate showing a lack of supply for inventory in an area. A Buyer’s Market will typically have more than 6 months of inventory in the market place giving the buyers more options and in turn more power when negotiating. The absorption rate in the 3-county area for all price ranges was 6.3 months. This is a 3-county average, and in different price ranges there are significantly different statistics. For example, a price range from $135,000 to $185,000 has a 4.0% absorption rate showing a stronger seller’s market in this price range.
The final statistic shows the average number of transactions overall. These transactions help to make up the absorption rate, and knowing the average transactions for an area is very beneficial in valuing a home. This helps to know how much competition there is in the market place when buying through other buyers.
As we finish the 4th quarter of the year, average days on market will begin to go up, and new listings will most likely start to lessen. Transaction count will taper down as the seasons change, but do not worry! The best time of the year for new real estates will come again in the spring!
If you are interested in getting a valuation of your property and tips on what you can do to prepare your home to be listed in the Spring (or now), please contact Traverse Real Estate!