Alan Pope’s Market Trends
A favorite of many of us real estate brokers is his King County Absorption of Inventory. We eagerly await his report to confirm our suspicions of what ever we are experiencing on the ground as far as a turn in real estate markets.
We expected to see results of a seller’s market, but this recent report was even more dramatic than we expected. This report is two pages, the first shows a five-year trend with both inventory (supply) and net pending sales (demand) listed as a line graph. The second page is a mathematical equation to tell us how much of the supply is being absorbed by the demand. March of 2012 shows a rise that is almost completely unprecedented.
A shy 58% of homes on the market in King County during the month of March 2012 received an acceptable offer for the seller. Even during the most recent boom market, the absorption rate only hit that bench mark occasionally, and the rise was considerable more gradual. This change is not only dramatic in what it means for home sellers in King County, it’s significant in the speed of which this market appears to have changed.
See the full report here: http://alanpope.com/Mar12/King.pdf