The Chelsea Real Estate Market Report provides Buyers and Sellers with more than just statistics – The report provides direction as to where the Chelsea real estate market is currently. This report breaks down Days on Market in smaller market segments. The information in this report tells buyers whether inventory is high or low depending on their particular bracket and whether this is a good time to put your house on the market and likewise a good time to purchase a new home.
For instance – Absorption Rate is an interesting statistic that indicates to buyers and sellers whether the real estate market is giving way to a buyer’s or seller’s market. To derive the Absorption Rate you only need 2 numbers. How many active Chelsea homes (homes currently for sale) and the total number of homes that have sold over a specific period of time. You can also break this down into brackets. For our example I will be using the bracket of $150K – $200K to come up with the Absorption Rate for Chelsea homes in that price range.
To calculate the Absorption Rate – start by calculating the average sales per month. Our bracket had 23 Sales divided by 6 months of data giving us 3.83. Now divide the total number of active listings, which is 32 in our bracket, by 3.83 (the average number of sold properties) and you will get the absorption rate which is 8.35. Remember these are just approximate months of inventory that we are determining considering all data remains constant.
By placing the Chelsea Absorption Rate into a heat index, located along the right hand side of the chart below for each bracket gives us the absorption rate of every segment of the inventory. The color Red indicates a favorable Selling Market and Blue indicates a Buyers Market. To read the complete report and see a larger image of the chart below go to the August Issue of the Chelsea Real Estate Market Report.
The $150K – $200K bracket leads the way with Active Homes @ 32 with a median of 77 days on market (DOM) with a median list price of $174,950. Advancing over in this bracket out of the 95 properties that sold in Chelsea over the past 6 months 23 properties sold in this bracket with a median price of $174,000 and 63 DOM. The absorption rate (approximate months of inventory) shows 8.3 months of supply. If no other homes came on the market, it would take8.3 months for all of those homes to sell. The 8.3 months is cool to mild. Keeping in mind that moving toward the Blue color indicates a Buyers Market and moving toward the Red favors a Sellers market.
Looking at Chelsea as a whole the absorption rate indicates favorable market for both buyers and sellers. The $200K – 250K bracket is the only segment leaning toward the Seller’s Market. Properties in the $400K – $450K price range have sold quickest over the last six months.
Buyers – this is a terrific time to purchase a home in the Chelsea, MI real estate market,. The heat index indicators are showing yellow to blue which is great for buyers and interest rates are presently at an all time low. This is a perfect time to buy.
The Chelsea Absorption rate is 8.7 months. Call the Toth Team at 734.426.6669 and set up an appointment to go over the home buying process or to determine the right time to list your home. To search for homes currently on the market – for free – go to www.HomeSearchAnnArbor.com. You can search using your smart phone.