May 5, 2017
By: Maryanne Elsaesser- Broker Associate
Coldwell Banker Residential Brokerage Wyckoff, NJ
In order to determine whether we are in a buyers or sellers market we must first understand the term “market absorption”.
The absorption rate is the rate at which available homes are sold in a specific real estate market during a given time period. It is calculated by dividing the total number of available homes by the average number of sales per month.
A six month inventory is considered “normal” or stable, less than six would be considered a seller’s market and more than that would be a buyers market. The media continues to promote a strong real estate market, however; when you look at the numbers closer it varies greatly and is area specific. Additionally, in order to have a true gauge it is best to reflect on a three-month consistency.
Below you will find the absorption rates for our local markets by town. You be the judge.
Allendale – 4.9
Franklin Lakes – 11.8
Glen Rock – 3.4
Mahwah – 5.4
Midland Park – 5.1
Oakland – 4.9
Ramsey – 4.8
Ridgewood – 6.1
Upper Saddle River – 7.3
Waldwick – 4.6
If you think you may benefit from an in depth conversation on this topic specific to your area contact Maryanne at 551.206.9264 or email: Maryanne.Elsaesser@gmail.com