What is absorption rate and what does it have to do with me buying a home in Post Falls or Coeur d’Alene?

What is absorption rate and what does it have to do with me buying a home in Post Falls or Coeur d’Alene?

Absorption rate, in a nutshell, tells us if the current amount of homes on the market are increasing or decreasing in number.

A “healthy” absorption rate is is between 4-8 months of inventory.  This means that it would take between 4-8 months for every single home currently listed for sale to sell (as long as no other homes are put on the market).

A “healthy” absorption rate means the market is balanced.  Prices are not decreasing, nor are they appreciating rapidly.  This is a good place to be.

A “sellers” market is typically when absorption rates are less than 4 months.

A “buyers” market is typically when absorption rates are greater than 8 months.

Right now, as a buyer, it is important to know that it is a “buyer’s” market in Post Falls and Coeur d’Alene.  However, JUST BARELY a buyer’s market.  The current absorption rate for single family homes in Post Falls and Coeur d’Alene is 8.8 months.

This means that as a buyer, you want to be careful about the offers you make on homes.  You’ll need to know list-to-sale price ratios so that you don’t come in so low that you completely miss out on the home you want.  Sellers are not as desperate as they were just a year ago.  Yes, it’s still a buyer’s market, but just barely.  You’ll also need to know if the neighborhood you are buying in is a buyer’s market (or a seller’s market). Nothing is black and white.

Absorption rates vary by town, neighborhood, type of home, price of home, etc.

Call (208-906-3370), text (208-906-3370) or email (team@northidahodreamteam.com) Chuck

He’ll make sure you 1) get the best price possible in today’s market and 2) get the home you want and not lose out to another buyer.

Ready to get a great deal without losing out?  Call (208-906-3370), text (208-906-3370) or email (team@northidahodreamteam.com) Chuck

Check out homes for sale here:

To see any of these homes offline and in-person, just call (208-906-3370), text (208-906-3370) or email (team@northidahodreamteam.com) Chuck.

Coeur d’Alene Homes for Sale

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To see any of these homes offline and in-person, just call (208-906-3370), text (208-906-3370) or email (team@northidahodreamteam.com) Chuck.

Post Falls Homes for Sale

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To see any of these homes offline and in-person, just call (208-906-3370), text (208-906-3370) or email (team@northidahodreamteam.com) Chuck.

 

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