Absorption Rate is Less than 1 Month for All of Arlington
For the last few years real estate in Arlington has been in short supply. A quick glance at the numbers in the last 30 days proves the current inventory levels of Arlington real estate are not enough to keep up with demand. The absorption rate can be calculated by the following formula:
Number of Current Homes Active on the Market (Supply) / Number of Homes Under Contract in the Last 30 Days (Demand)
In Arlington there are currently 359 homes actively listed for sale. In the last 30 days there have been 188 homes that went under contract. Therefore the absorption rate is 359/188, or 1.9 months. If you zoomed in to the most popular zip codes or areas in Arlington the rate would be even lower.
So What Do These Numbers Mean?
Most experts consider a 6 month absorption rate to be a balanced market. When the rate is lower the market favors sellers and when the rate is higher the market favors buyers. At less than 2 months inventory in Arlington, the number are definitely favoring sellers.
If you are considering selling, this means it is even more important to talk to a local real estate expert that knows the direction of the market and how to best capture the demand. Too much focus on past sales could cause you to leave money on the table by aiming where the market has been instead of where the market has been going.
If you are on the fence about buying the news is not bad. With interest rates hovering near historic lows you have a great chance to lock in low cost, long term financing to take advantage of this trend. It is very important to work with an expert agent that can get you access to properties as soon, or even before, they go on the market and educate you on all the factors about the home buying process and the market so you can be prepared when the right home comes up.
If you have any questions about how the Arlington real estate market might affect your plans to buy or sell call Dan today at 571-969-7653 or fill out the form below.