Absorption Rates – Why are they important to Buyers and Sellers?

It is imperative in today’s market to understand Absorption Rates and Pricing Consequences.  In its simplest terms, the Absorption Rate is the rate at which properties are selling in a given area considering current inventory, closed sales and a specified time period.

If you are a seller, understanding the data below may be the difference between a realistic market picture and a quicker sale or a lengthy market time and significant disappointment.   As a purchaser, you must understand which price ranges are in higher demand and circumstances which might make the seller less inclined to negotiate.  If you need additional information on any other areas in Northern Virginia or simply to help you understand the process of analyzing this data, please feel free to contact me, Irene Morales Ward, for all you Northern Virginia Real Estate needs.

Absorption Rates in Stafford by Zip Code – YTD

Current Inventory / (Closed Sales/9 Months) = Absorption Rate

Data based on single family homes

22554

Price Ranges                                     Current Inventory               Closed Sales YTD                  Absorption Rate

Up to $249,999                                                    11                                           7                            14 months

$250,000 – $299,999                                          15                                           26                           5 months

$300,000 – $349,999                                          53                                           54                           9 months

$350,000 – $399,999                                          121                                         123                         9 months

$400,000 – $449,999                                          66                                           92                           6 ½ months

$450,000 – $499,999                                          62                                           56                           10 months           

$500,000 – $549,999                                          28                                           25                           10 months

$550,000 – $599,999                                          28                                           20                           13 months

$600,000 – $649,999                                          12                                           12                           9 months

$650,000 – $699,999                                          15                                           6                             22 ½ months

$700,000 – $799,999                                          17                                           4                             38 months

$800,000 – $899,999                                          10                                           2                             45 months

$900,000 – $999,999                                          3                                             0                              No Data

$1,000,000+                                                         3                                             1                              27 months

22556

Price Ranges                                         Current Inventory               Closed Sales YTD                  Absorption Rate

Up to $249,999                                                     7                                            17                                           4 months

$250,000 – $299,999                                          21                                           24                                           8 months

$300,000 – $349,999                                          31                                           33                                           8 ½ months

$350,000 – $399,999                                          54                                           25                                           19 months

$400,000 – $449,999                                          25                                           23                                           10 months

$450,000 – $499,999                                          12                                           8                                              13 ½ months

$500,000 – $549,999                                          7                                             12                                           5 months

$550,000 – $599,999                                          19                                           8                                              21 months

$600,000 – $649,999                                          4                                             6                                              6 months

$650,000 – $699,999                                          13                                           5                                              23 months

$700,000 – $799,999                                          15                                           10                                           13 ½ months

$800,000 – $899,999                                          5                                              4                                              11 months

$900,000 – $999,999                                          2                                              1                                              18 months

$1,000,000+                                                         2                                              0                                              No Data

22406

Price Ranges                                         Current Inventory               Closed Sales YTD                  Absorption Rate

Up to $249,999                                                     3                                            3                                              9 months

$250,000 – $299,999                                          11                                           7                                              14 months

$300,000 – $349,999                                          21                                           14                                           14 months

$350,000 – $399,999                                          34                                           27                                           11 months

$400,000 – $449,999                                          33                                           24                                           12 months

$450,000 – $499,999                                          31                                           7                                              40 months

$500,000 – $549,999                                          24                                           13                                           17 months

$550,000 – $599,999                                          16                                           3                                              48 months

$600,000 – $649,999                                          12                                           4                                              27 months

$650,000 – $699,999                                          17                                           2                                              77 months

$700,000 – $799,999                                          9                                              1                                              81 months

$800,000 – $899,999                                          5                                              1                                              45 months           

$900,000 – $999,999                                          1                                              0                                              No Data

$1,000,000+                                                         1                                              2                                              4 ½ months

22405

Price Ranges                                         Current Inventory               Closed Sales YTD                  Absorption Rate

Up to $249,999                                                    27                                           28                                           9 months

$250,000 – $299,999                                          43                                           36                                           11 months

$300,000 – $349,999                                          48                                           48                                           9 months

$350,000 – $399,999                                          46                                           46                                           9 months              

$400,000 – $449,999                                          31                                           26                                           11 months

$450,000 – $499,999                                          23                                           13                                           16 months

$500,000 – $549,999                                          10                                           8                                              11 months

$550,000 – $599,999                                          12                                           3                                              36 months

$600,000 – $649,999                                          6                                              1                                              54 months

$650,000 – $699,999                                          9                                              1                                              81 months

$700,000 – $799,999                                          4                                              0                                              No Data

$800,000 – $899,999                                          2                                              0                                              No Data

$900,000 – $999,999                                          3                                              0                                              No Data

$1,000,000+                                                         1                                              2                                              4  months

All information deemed accurate but not guaranteed.  Source of data: MRIS® 9/17/2007.

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About Quantico Homes

Working primarily as a referral agent, my main motivation is to be able to provide you the highest possible level of service as you look to buy or sell your home in the Northern Virginia Real Estate market. You should be so impressed with your service that you will feel compelled to refer me to your family, friends and colleagues. Our time together is always well spent meeting your specific needs because my time and effort is not spent looking endlessly to generate more business. As an Accredited Buyer's Agent, the buyer's criteria becomes paramount during the homebuying process. Your needs will never be compromised because Dual Agency is not something I participate in. This is a distinguishing characteristic from many in the industry and I stand firm in the belief that no client in a transaction (whether a buyer or a seller) should be without 100% representation. You deserve all the loyalty and attention from an agent who will always have only your best interests in mind. Keeping in mind that Northern Virginia is a highly transient area, I am always privvy to sales reports and market analysis of all the surrounding counties from Alexandria/Arlington to as far south as Orange County and from east on the Potomac River to the Shenandoah and West Virginia border (and all points in between!). Between the military, corporate, and government relocations, having an agent working to provide you with the latest statistical information and market trends is imperative to a successful sale or purchase. Also, as an e-Pro, finding you homes and communicating that to you becomes increasingly efficient, as does marketing properties for sale. Using exceptional photography for virtual tours, staging all listings, and incorporating "out of the box" methods to generate the largest number of buyer leads while Marketing Your Property For Sale, I can save you time, money and frustration. Start your search for homes at http://www.IreneMoralesWard.com!
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