Here is a quick look at absorptions rates for the seven county metro area, not quite as pretty as the view from the library window. Absorption rates are a calculation of how long it will take for all the homes on the market to be sold, or absorbed, based on how many homes are on the market and how many were purchased in the last 30 days.
The numbers used for calculating absorption rates are from the regional MLS, which is deemed reliable but not guaranteed, and should not be confused with MLSonline, which is a real estate company, not the MLS.
For several months the inventory of homes on the market went up because more homes were listed than were sold. This is still true, but new listings have gone down slightly and sales up slightly, causing the inventory of homes for sale to decrease, but is still high for November.
During the holiday season home sales do slow. Some home owners take their homes off the market during the holiday season, I guess I don’t understand how that is going to help it sell any faster. Showings will go down and no one will stop by on Christmas eve to see the place. Home buyers that are looking in November and December are usually motivated and serious about buying a home.
Readers will see a difference from one metro county to another, which again emphasizes that real estate is local.
Carver County – 11.7 Months
Dakota County – 9.8 Months
Hennepin County – 9.3 Months
Ramsey County – 10.2 Months
Scott County – 13.2 Months
Washington – 10.9
Absorption rates are up from last month, except for Ramsey, Hennepin and Scott county where they remained the same or went down slightly. Will they go down next month?