The Tale of Two Real Estate Markets in North Texas

By consistently tracking the Absorption rate and MDOM we can keep up with the pulse of the local Real Estate Market.

Absorption rate is defined as the amount of time in months that it would take to sell the current number of homes on the market.

MDOM is defined as the medium number of days a house in a specific area is on the market before is sells.

When absorption rates are in the range of 4 to 6 months this is considered a balanced market. Absorption rates near and less than 4 months are considered seller’s markets with absorption rates nearing 6 months and more considered buyer’s markets. During seller’s markets it becomes common to see homes sell in less than 20 days while during buyer’s markets homes take as long as 50, 60 or more days to sell. 

The Two Markets in North Texas

Market 1 is a Seller’s Market and consist of Homes listed from $1 to $449,999

Market 2 is in a Buyer’s Market and consist of Homes listed from $450,000 and more

Absorption rates of local North Texas Counties of homes listed below $450,000 are under 2 months suply with homes listed over $450,000 at and over 6 months 

Why is this information important?

• ·         Setting goals and expectations while planning and timing your move
•       Negotiating and knowing how firm your original list price or offer can stand
•        Setting your starting offer or list price
•       Recognizing opportunities such as the move up opportunity in today's market (Top dollar for your lower priced home with more inventory to choose from in your dream home)

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