Estero Homes for Sale Inventory
The actual number of Estero homes for sale increased from August to September, with homes for sale increasing by 19 homes. The total available homes was 456 in August versus 476 at the end of September. However, due to the level of closed sales the months of inventory for Estero homes for sale has remained level at September from August’s 20 months. Since the beginning of February 2008 with 32 months of inventory, the months have dropped 12 months to its present level. The reader should review the graph as not only does it measure the months of inventory (adsorption rate) based upon a 12 month moving average, but reflects the 3, 6, and 9 month moving average.
The real estate market for Estero single family homes still remains a strong buyers market. A neutral market is generally around 6 months of inventory.
Below the presentation is a discussion of the meaning for the various absorption rates and how they may influence your decision for selling or buying real estate in the Estero real estate market.
- Estero homes for sale months of inventory.
The 3, 6, or 9 month moving average reflects the relationship of closed sales over the immediate past three, six or nine months and the number of Estero homes on the market for sale.
When the trend line for these moving averages decline it is the result of an increase in closed sales with a constant level of homes available for sale or a constant number of closed sales with a declining number of homes for sale. A decreasing trend line represents movement towards a sellers market.
An increasing trend line reflects a lower volume in closed sales with a constant level of homes available for sale or a constant number of closed sales with an increasing number of homes for sale. An increasing trend line represents a movement toward a buyers market.
In the above graph the trend lines are moving upwards, due to closed sales on a per month basis being lower than it is was in earlier part of the year, while the number of homes for sale remained fairly constant and the listings declining only during various months.
Trends over a short period of time can be misleading due to seasonal fluctuations for new listings, which become available for sale, or closed sales.
The months of October and January generally are the highest months for new listings.
Shortly, the Estero real estate market update report for Estero homes covering both the month and quarter ended September 30, 2008 will be posted within this blog.
