A few days ago I’d posted about Real Estate Absorption Rates and Inventory Levels for Real Estate In Charlotte NC and just wanted to add an additional note.
Lately it’s not uncommon to find a lack of any recent successful sales for a Charlotte NC neighborhood, particularly in prices ranges over $250,000. When that happens the absorption rate is zero, meaning the available Charlotte NC real estate for sale isn’t being absorbed or bought by current buyers.
The recent Beverly Woods Real Estate Market in Charlotte NC is a really good example of a super strong buyer’s real estate market and has been for several months now.
When the real estate absorption rate for a given Charlotte NC neighborhood or price range is zero, it leads to an “undefined” level of real estate inventory for that Charlotte NC neighborhood or price point.
An undefined level of Charlotte NC real estate inventory is generally the highest possible level of buyer favored real estate market conditions in Charlotte NC.
An undefined level of real estate inventory in Charlotte NC can also happen when list prices drop below the previous “floor” for that Charlotte NC neighborhood. In that case it’s still in favor of buyers, mainly with the discount in price – for example a Charlotte NC home listed at $190,000 when all real estate sales in that Charlotte NC neighborhood have been over $200,000 for a year or more.
So really it comes down to looking at the recent trends, current real estate for sale and how available Charlotte NC homes for sale fit in and relate to where the current buyers are or sometimes more importantly are NOT finding value.
Copyright©2009 by Diane McDermott, All Rights Reserved, “Another Note About Real Estate Inventory Levels and Absorption Rates…”