Portsmouth NH Homes Condos Real Estate

Portsmouth New Hampshire Real Estate Absorption Rate Information

If you’re a property owner in the Portsmouth New Hampshire area, or anywhere for that matter, one of the things that’s really important to know in today’s real estate market is the absorption rate for your area. 

What is that, and more importantly, why should you care about it?

The real estate absorption rate tells you just how long it would take for the buyers out there in the market to absorb the current inventory of homes or condos with no more new listings coming on the market.  We start with the number of sales that took place within a specific period of time, and then we look at the number of properties currently for sale, and come up with amount of time it would take to sell every property currently on the market.

I’ll show you how we figure it out.  Let’s take Portmouth New Hampshire homes as an example:
In the last 5 months, we had 42 homes sell, and we currently have 80 homes for sale.  If you divide 42 (homes sold) by 5 (months - the time period I used in this example), we get 8.4, which is the average number of homes sold per month in the last 5 months.  So, if we’ve got 80 homes currently on the market for sale, it will take almost 9 1/2 months to absorb that amount of inventory, assuming no new listings come on the market to increase that inventory. 

So, now why is knowing that number important to you?    

If you’re thinking about putting your home on the market for sale, no doubt you do not want to take almost a year to get your house sold.  In order to ensure you sell in less than the current absorption rate is showing, you need to be aggressive in your pricing and in getting your home or condo in really great condition.  You want your competition to sell your property, not your property helping to sell your competition.  Make sense?

Another way to look at it, plain and simple, is you’ve got to price your home or condo under the competition to make sure your property gets sold instead of languishing on the market for almost a year before it sells.

When you’re interviewing REALTORS to find the right one for you to hire, ask about the absorption rate.  I find that very few REALTORS in my area ever talk about the absorption rates, most just don’t know what it is nor why it’s really so important to know about and discuss with sellers today.  Knowing absorption rates for the areas we service is part of knowing and understanding our marketplace - it’s hard to truly service a seller if we don’t know these types of numbers.

Curious about the absorption rates in the Seacoast areas of New Hampshire and southern Maine?  Here are some of them to help you gauge your market area:

Portsmouth NH Homes    9.5 months
Portsmouth NH Condos    7 months

Rye NH Homes  '  11.5 months
North Hampton NH Homes    20 months
Stratham NH Homes  '  18 months
Greenland NH Homes  '  11 months
Exeter NH Homes  '  17 months
Hampton NH Homes  '  13.75 months
Dover NH Homes  '  15 months
Durham NH Homes  '  8.25 months

Kittery Maine Homes  '  16.75 months
Eliot Maine Homes  '  13.5 months
York Maine Homes  '  19.5 month

This is a samplling of the current absorption rates in the Seacoast New Hampshire and southern Maine areas.   You need to know these numbers for your areas if you’re thinking about selling real estate.  If your REALTOR doesn’t go over these with you, make sure to ask about them.  Proper pricing can only come about if home owners are fully informed about the real estate market, and knowing your absorption rate is part of that information.

Read related articles:

• Pricing Your Portsmouth NH Homes and Condos Correctly for Todays Market
• Pricing Your Home To Sell
• • Tips For Hiring Your New Hampshire-Maine REALTOR                
  • Selling A Home in the Portsmouth NH and Maine Areas
  • How Is YOUR Property Being Represented?

Are you giving thought to buying or selling real estate in any of these areas?  If you are, send me an email or give me a call - I’d love to help you achieve your real estate goals!

                                  
  Ann Cummings, New Hampshire and Maine REALTOR
  Real Estate Broker - NH and Maine
  RE/MAX Coast to Coast
  Portsmouth NH
  ann@anncummings.com
  888-349-5678 x 3839
  Servicing the Coastal Areas of NH & Southern Maine                    



                                    

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