Are We In a Buyer Or Seller’s Market Right Now? You May Be Surprised With The Findings.


May 5, 2017

By: Maryanne Elsaesser- Broker Associate

Coldwell Banker Residential Brokerage Wyckoff, NJ

 

In order to determine whether we are in a buyers or sellers market we must first understand the term “market absorption”.

The absorption rate is the rate at which available homes are sold in a specific real estate market during a given time period. It is calculated by dividing the total number of available homes by the average number of sales per month.

A six month inventory is considered “normal” or stable, less than six would be considered a seller’s market and more than that would be a buyers market. The media continues to promote a strong real estate market, however; when you look at the numbers closer it varies greatly and is area specific. Additionally, in order to have a true gauge it is best to reflect on a three-month consistency.

Below you will find the absorption rates for our local markets by town. You be the judge.

Allendale –                   4.9

Franklin Lakes –        11.8

Glen Rock –                   3.4

Mahwah –                     5.4

Midland Park –            5.1

Oakland –                     4.9

Ramsey –                      4.8

Ridgewood –                6.1

Upper Saddle River – 7.3

Waldwick –                  4.6

Wyckoff-                      6.7

 

If you think you may benefit from an in depth conversation on this topic specific to your area contact Maryanne at 551.206.9264 or email: Maryanne.Elsaesser@gmail.com

 


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