Absorption Rate and Current Supply: Summit & Surrounding Communities

Click on the link below to view a chart that shows the current market activity for Summit, Short Hills, Chatham(s), Madison, Harding Township,Mendham Township & Borough, New Providence, Berkeley Heights, Warren, Watchung and Bernards Township since June 1, 2008 though December 31, 2008

Absorption Rate & Current Supply

Absorption Rate = the average number of sales per month.

Current Supply = the number of sales per month divided by the current units available for sale.

Comments: The inventory levels are not building and the units available are close to 2007 levels.  The weakness in the market is absorption rate, the rate in which properties are moving; therefore, current supply is at an all-time high with most towns having over 6 months’ supply.

We continue to see most of the movement in the under $500,000 range.  First-time home buyers are getting out of paying high rents and taking advantage of conforming mortgage rates at about 5%.

Data from Garden State MLS.  Only properties listed since June 1, 2008 – December31, 2008
* Source:  Citi-Data