Happy Holidays Everyone!
We are at the end of the year now and I have taken a look at the sales results for November. The hype keeps coming, but I can tell you that we will be heading into the new year without much of a change in our market.
First, I will go over Island wide stats and then focus on Edgartown.
According to LINK MV, last month the Island had 36 single family home sales, compared to 38 last year in November. Inventory this year was 261 versus 276 properties in November of 2018.
In Edgartown, there were 12 single family home sales in November, down from 16 in 2018. However, the inventory was down this year – from 100 to 95 properties for sale.
This does not seem to indicate any big changes in the market here on the Island, but let’s go over absorption rate to help determine if we’re in a buyer or sellers market.
The Absorption rate in real estate is the rate at which available homes are sold in a specific market during a given time period. It is calculated by dividing the number of sales per month by the total number of available homes.
An absorption rate above 20% signals a sellers market, in which homes are sold quickly. A rate below 15% can be an indicator of a buyer’s market, where homes are not sold as fast.
Based on the data provided by LINK MV, November shows an absorption rate of 14% Island wide and 12% in Edgartown. Now, I do have to add that on the Vineyard, we see many homes that may be on the market for a long time and sometimes this is an indication of a seller who does not need to sell, but would be interested only at the ‘right’ price. This portion of the listing inventory could potentially drive our absorption rate lower, giving the false sense of a buyer’s market.
Regardless, data is showing just a touch of a slow down, but certainly nothing significant here on the Vineyard.
Make it a great home buying and selling day and Cheers to a happy and healthy New Year!