What Price Ranges are Selling in Newtown, CT - as of 7/15/09. People are under the impression that absolutely NOTHING is selling right now ANYWHERE. This is not true. Homes in the different price ranges sell at different rates. Some are REALLY moving right now - some are not. The tool we use to determine what price range is moving and what isn't moving is something called an "absorption rate".
What is an absorption rate? This is a hypothetical estimate of the number of months it would take to sell the inventory of houses on the market. An absorption rate can be by town, county, state or even a neighborhood. Obviously, inventory is replenished, so it would not happen in the real world. The absorption rate is based on sales and current deposit levels. It is generally broken out by price range.
What is an absorption rate used for? When looking at absorption rates, Realtors can see what price range is moving in the given market. For example, there may be a 3 month supply of homes in the $450,000 to $499,999 price range and a 10 month supply of homes in the $500,000 to $549,999 range. If you were going to list a home for sale, do you think it would sell quicker if it was listed at $495,900 or $509,900? Given the aforementioned absorption rates, it would take 3 times longer to sell the home if priced over $500,000.
So, now for the technical stuff. The table below illustrates the current absorption rates for the different price ranges in Newtown. The Months of Inventory with the lowest numbers indicate the price ranges that are selling in Newtown, CT.
|
Price Range
|
# of Active Listings
|
# of Sales in the Last 6 Months
|
# of Deposits
|
# Months of Inventory
|
| $0.00 to $199,999 |
9 |
6 |
2 |
7.31 |
| $200,000 to $249,999 |
3 |
3 |
4 |
2.8 |
| $250,000 to $299,999 |
9 |
8 |
2 |
5.8 |
| $300,000 to $349,999 |
3 |
6 |
4 |
1.9 |
| $350,000 to $399,999 |
27 |
7 |
4 |
15.9 |
| $400,000 to $449,999 |
19 |
3 |
4 |
17.75 |
| $450,000 to $499,999 |
29 |
4 |
1 |
22 |
| $500,000 to $549,999 |
1 |
9 |
5 |
.46 |
| $550,000 to $599,999 |
16 |
6 |
3 |
11.6 |
| $600,000 to $649,999 |
11 |
6 |
0 |
11.95 |
| $650,000 to $699,999 |
24 |
5 |
1 |
26 |
| $700,000 to $749,999 |
6 |
5 |
4 |
4.34 |
| $750,000 to $799,999 |
17 |
1 |
0 |
30.6 |
| $800,000 to $849,999 |
12 |
3 |
0 |
26 |
| $850,000 to $899,999 |
8 |
2 |
0 |
26 |
| $900,000 to $949,999 |
4 |
1 |
0 |
26 |
| $950,000 to $1 million |
4 |
1 |
0 |
26 |
| $1 million + |
30 |
2 |
0 |
100 |
What does all this mean? If you are planning to list a home for sale with a list price of $565,000, you might want to consider a list price in the price range just below ($500,000 to $549,900) as you should have a better chance of getting your home sold quicker. If you have a home listed for sale in Newtown for $750,000 or more, expect it take a long time to sell.
We hope that we have given you a clear picture of what price ranges are selling in Newtown, CT. If you have any questions, please Email us!
Bob & Richelle Ward, Realtors, ABR
Prudential Connecticut Realty
www.connecticuthomesforsale.com
Cell - (203) 470-9818
