All right, so if you’re a homeowner in Patchogue or Medford this information is going to be for you. I want to show you how the market is doing in your area as of today.
The way a realtor measures supply and demand in any given area is based on what is called an “absorption rate”. An absorption rate tells you how much inventory is in the market based on the rate at which that market sells. For example, if Medford typically sells 20 homes a month and there are 40 homes on the market total in Medford, then that area would have two months worth of inventory. A balanced Market here on Long Island typically has five months worth of inventory. That means it’s not leaning in a seller’s favor and it’s not leaning in a buyer’s favor the minute you have more than five months worth of inventory in a market. This is when you begin getting into a buyer’s favor because there’s more inventory so supply and demand is in a buyer’s favor. When you are less than five months worth of inventory, then you begin to get into a seller’s market because there’s not enough inventory.
As you can see right here this is the absorption rate from Medford today there is roughly 3.5 months worth of inventory, which is less than five which means supply and demand is in a seller’s favor.
Today, this is the absorption rate for Patchogue. Today it is 1.6 months worth of inventory. That is a very low number which means if you are thinking of selling this is a great opportunity for you. Medford’s number was higher than Patchogue but I do want to point out that just two months ago Medford’s inventory was less than two months which is extremely low. So to conclude, both markets are in a seller’s favor today and if you or a loved one are contemplating selling in the near future, right now the market is in your favor. The time to get the most amount of money is today. So reaching out to the king of homes team will let you know exactly what your home is worth, what the process looks like, what you can walk away with, and by the time we leave you will know everything you need to know in order to decide what the next best step to take is.