Currently in the Northeast, there is a six-month supply of homes on the market. What does that mean? Well, according to the absorption rate, the Northeast may be ready to experience a balanced market.
Interpreting the Market Trends with the Absorption Rate:
- A six-month supply of homes represents a “balanced market.”
- Numbers falling below six represent moving towards a”sellers market.”
- Numbers rising above six represent moving towards a “buyers market.”
Philadelphia’s overall housing inventory accumulation statistics show a nine-month supply currently. The Northeast has been teetering around six for the better part of 2010 since it was such a great time to buy, with the great interest rates and tax incentives, but only time can tell what kind of absorption rates we will see in 2011.
Two thousand-seven hundred-fifteen homes were sold in the Northeast in the last year. Sales were down from 3,246 in 2009 and the average sale price was down in 2010, as well.
The average list price was $169,000 compared to 2009 when it was $172,000. Average days on-market in 2010 was about the same at 62 days compared to 65 in 2009. And the average sale price was down slightly last year at less than $158,000 compared to 2009 which was $161,000.
Foreclosures played a role in the hit on the average sale price in Northeast Philadelphia last year. Hopefully we won’t see the same in 2011 but foreclosures are expected to make an impact this year as well. Also we may get to see for the first time in a couple years how rising interest rates will affect sales.
Stacey McCarthy is a real estate agent with the McCarthy Group of Keller Williams. Her Real NEastate column appears every Wednesday on NEastPhilly.com. See others here. Read other NEast Philly columns here.