Market Absorption

According to Real Estate Insights, the National Association of Realtors (NAR) magazine, as 2006 came to a close, there was a marked decline in the month's supply of inventory available on the market, down from an average of 7.2 months to 6.4 months.  The decrease in inventory was largely attributed to the late-year increase in sales, accompanied by fewer new listings entering the market.

As the market continues to heat up in 2007, many experts are predicting that the month's supply of inventory could drop to under the six month mark - the point at which the market is deemed "normal and balanced" by the industry.

Weichert News - 02/09/07