If you are thinking of buying a home in the Pinecrest FL real estate market, it would be a good idea for you to understand the “absorption rate”.
Pinecrest FL real estate, as all real estate, should be seen as a commodity, such as is gold, oil, wheat, etc. The price is set by the market using the rules of supply and demand. The absorption rate is an indicator of how long it will take to sell the current inventory; and therefore, show us if we’re in a Buyers or Sellers market. When looking at the Pinecrest FL real estate market, it certainly is still a Buyers market. A high level of inventory together with slow Buyer activity makes for a Buyers market.
The Pinecrest FL real estate market absorption rate is a mathematical relationship of supply and demand. The Pinecrest FL real estate market absorption rate is the number of months if would take to sell the entire supply of inventory if the sales pace were to stay the same.
Today we have a total of 194 single family homes for sale in the Pinecrest FL real estate market. The average number of homes that have sold in the past 6 months is 13 per month. So by dividing 194 by 13 you get 15. It would take 15 months to sell the current inventory of homes for sale in the Pinecrest FL real estate market.
Now, what does this figure mean? If you have an absorption rate of 1 – 4 months of inventory, you would be in a Sellers market. 5 – 6 months of inventory is considered a normal balanced market. When you have over 7 months of inventory, you’re in a Buyers market.
Now, for this example I have used the entire inventory of the Pinecrest FL real estate market ranging from $399,000 to $5,650,000. When looking at homes for sale in the Pinecrest Fl real estate market, you should have the market rate calculated within the price range you are considering.
So yes, this is a real good time to be buying in the Pinecrest FL real estate market.