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
- Wyckoff – 6.7
