On November 22, The Greater Northwoods Multiple Listing Service had 2,722 listings for single family detached homes. In the previous 12 months, 1,264 listed homes of this type sold. This results in a market absorption of 105 homes per month averaged over the last 12 months. With 2,722 homes listed, it would take almost 26 months to sell them all at the calculated rate of absorption.
Let’s break this down a little further. Of the 2,722 homes, 1,140 are lake homes. 380 sold in the last 12 months. This is a average market absorption of close to 32 lakefront homes and cottages per month. With 1,140 listings, it would take 36 months to sell them all presently listed properties at the this calculated rate of absorption.
It is important to keep these numbers in perspective. Even in a "hot" market many properties will not sell in a timely fashion and some will never sell (due to being overpriced.)
It will be interesting to see how these numbers change as we go forward from here in this “challenging” market. These are the numbers that will help us pinpoint when the market is beginning to turn for the better.
The market absorption rate can be figured for any type of property in any geographical area or municipality in our MLS; just ask and I will be happy to run the numbers for you.