What does the absorption rate say about our local real estate market?
Today we wanted to reach out and discuss something very unusual in our real estate market: the absorption rate. The absorption rate refers to the rate at which all the homes currently available in the market would sell if no new homes came on the market. In other words, it shows how quickly the market will ‘absorb’ the current available inventory. Anything above six months would be a buyer’s market, five to six months is a neutral market, and below five months is a seller’s market.
A recent market report for the Louisville area market shows that we are well below the five-month threshold; in many price ranges, we only have a one- to two-month supply of homes. That means as we end 2021, the market is amazingly hot. We believe that 2022 is going to be a record year for real estate, so if you’re even considering selling your home, we’d love to come out and look at what you need to do to be ready to go on the market.
We spoke with many sellers to hear what they had to say about their experiences selling with us. One couple signed with us on a Monday, and by Tuesday, we put the sign in the yard. We got 13 offers by the next evening!
Another seller listed with us on a Thursday; she received four showings on that Friday and one that Saturday. She had another showing scheduled for Sunday, but by that point, she had already accepted an offer! You can see more seller testimonies at the 1:52 mark in the video above and gain a better idea of what your experience will be like when you sell with us.
As you can see, the market is still very strong. If you’d like more information about Louisville real estate, tune in on Sundays to 840 AM WHAS from 8:30 a.m. to 9 a.m. Also, if you’d like to sign up for our real estate newsletter, visit www.WereSellingLouisville.com. Otherwise, if you’ve been thinking about selling your home or if you have any questions, don’t hesitate to reach out to us via phone or email. We’d love to help you.
We wish all our buyers and sellers the happiest of holidays. No matter what you’re celebrating, may all your days be merry and bright!