The chart below covers closings in January and February 2022 for single-family homes in the MLS. The numbers are all over the place but the last 2 columns indicate the days on market are climbing. Homes are selling but maybe not with 2 hours of listing.
The Absorption Rate compares the number of single-family homes hitting the market to the number of sales. It helps Realtors® calculate how long it might take for a property listed today to sell. Absorption Rate is the avg number of sales per month divided by the total number of available properties.
A short timeframe to sell equates to a seller’s market. And as any buyer out there will tell you- we’ve had a seller’s market since 2020.
The chart below tracks Absorption Rate for single-family homes from May 2019 to the end of February 2022. The number of properties sold in February 2022 was 731, down -45.69% from 1,346 from the previous month and -47.97% lower than 1,405 from February 2021. The February 2022 sales were at their lowest level compared to February 2021 and 2020.
March not only marks the end of winter it will also provide Realtors® with better data on which way the wind is blowing. So be prepared for price adjustments both up and down.