Some statistics to pay attention to as of September, 2010 for all of Kitsap County WA:
Months of inventory(Sold): 10.4 months
Absorption rate (Sold): 9.6%
Months of inventory (Pending): 7.7 months
Absorption rate (Pending): 12.9%
Months of Inventory means……The number of months that it will take for the listings currently on the market to sell based on how fast they are selling today. This month there are 1919 homes on the market…divide this by 185 which is the number of homes that sold this month and you will see that it will take 10.4 months for the homes we have to sell. 6 months or so of inventory is a neutral market. More than 6 months it is a buyers market….less than 6 months is a sellers market.
To show this number as a percentage just divide the 185 (homes that soldÂ in August) by 1919 (the total number of homes on the market) which would be 9.6%. 20-30% absorption rate is a stable market. In the crazy times of 2005 absorption rate was 50% in some places….extreem sellers market.