Windermere Mercer Island

Ever wonder how the ratio of for sale signs to sold strips affects the real estate market? We call this ratio the Absorption Rate—the rate at which homes sell in a given area and price point. The higher the absorption rate, the faster homes are selling. Absorption rate is calculated by taking the number of homes that sell each month divided by the total number of homes for sale.

For example, if 6 homes sell in December in Central Seattle between $800,000 and $1.2 million, and 15 homes were for sale, the absorption rate is 6/15 or 40%. If 1 home of 15 sells, the absorption rate is 1/15th or 6%. An absorption rate above 30% indicates a seller’s market in which homes are selling fast. Absorption rates below 15% show a buyer’s market, which means homes are selling relatively slowly. Everything in between is deemed a balanced market.

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Windermere Mercer Island

Can the real estate market really turn on a dime? The short answer is yes. Supply and demand dictate real estate just like any other market. Turn on the spigot of homes for sale or tamper down the demand and you’ll see a marked reaction. Do both at the same time and you’ll see that dime spinning.

One more note, this typically happens at the micro-level long before market-wide trends occur. So, for example, the red hot East Bellevue market might shift in only one or two price brackets and that shift could be short-term (1 or 2 weeks) or long term.

Blink and you might miss it. But keep your eye on the ball and you can take advantage of temporary slowing in an otherwise hot market.

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Windermere Mercer Island

While most buyers are still pondering 7 different ways to use leftover stuffing, we think now is a great time to talk turkey. The weeks between Thanksgiving and New Year’s are some of the most advantageous for diligent buyers to buy when the market favors them more than any other time of the year. 

But don’t just take our word for it. Check out the real-time data in the report below. Then contact one of our amazing brokers to evaluate the true value of potential homes and ensure that you don’t leave money on the table. 

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Windermere Mercer Island

You’ve been looking in {South Bellevue} for a while now and the market is just plain crazy. Being the savvy buyer you are, you and your broker are watching the weekly stats like a hawk.

Then, low and behold, you notice the market changes from Strongly Favors Sellers to Favors Sellers in your price segment. A potential opportunity to swoop in? Maybe. The indicator warrants taking a closer look and deciding if this is the right time to take a leap. One thing you’ll know for certain, most of the buyer’s out there are still reading last September’s news while you are actively monitoring the pulse of the market. If I were a gambler, my odds would be on you!

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Windermere Mercer Island

Why a weekly report you might ask? Tracking weekly activity captures trends that occur at the neighborhood and price point level before they reach mainstream data sources. 

While monthly data provides a nice historical look-back, its nearly two month’s old just prior to each release. If you’re a buyer or a seller in this frenzied market you know first-hand just how important real time data is in giving you a competitive edge. 

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Windermere Mercer Island

Ballard, Greenlake and North Seattle rocked the charts this week! Home buyers were back at it in force. With the Exception of West Bellevue and Woodinville, all Seattle area neighborhoods saw a decline in listing inventory coupled with an increase in pending sales. The coming week should bring a new surge of listing inventory, spurring on another strong round of pending sale activity.

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Windermere Mercer Island

This week will likely mark the last active listing week of August as buyers, sellers and agents enjoy the last bit of summer vacations and prep for back to school. The second half of August is a great time for buyers to find the tables turned in their favor.

Look for a rush of new listings to come to market in the week following Labor Day as we enter the second most active season of the year.

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