Today we will look at the absorption rate for Laurel real estate in Prince Georges County.
In the past I have used the term absorption rate to indicate how many homes are selling in the first thirty days on the market in a given area. I am going to do something a little different today that will give a different perspective on the current market.
In Laurel Maryland 20707 currently there are 107 active listings on the market. In addition, there are 29 homes marked under contract. These two number combined equal 136. Last month, twelve homes sold.
Ok, so if we average 12 homes a month selling, then at the end of the year we have sold 144 homes in zip code 20707. We divide 144 homes sold by 52 weeks in the year and we get 2.77 homes selling per week We divide the 2.77 into our inventory of 136 and we come up with about 49 weeks to sell off all the inventory. That would give us about 11 months worth of inventory in Laurel 20707.
In Laurel Maryland 20708 the numbers are slightly different. You have an inventory of 72 homes either active or under contract. Eight homes sold last month. If we apply the same formula as above, we discover we need about 39 weeks to sell off the inventory.
So in Laurel 20707 we have about 11 months of inventory and in Laurel 20708 we have about nine months of inventory. These numbers would be altered if the number of homes sold increases or decreases.
This new method of figuring out the absorption rate, may be more accurate than the previous method. These numbers clearly indicate a buyer’s market in both 20707 and 20708.