THE MARKET

The question I am most asked by clients is “how is the market right now?” They want to know when to buy or sell and what kind of return they can see on their investment given the current trends. The best answer to this question is the market’s absorption rate, or the percentage of homes sold in a given month.

Absorption rates of 25% or higher indicate a strong “seller’s” market. Homes sell quickly and are getting list price or above. An absorption rate below 15% is typically favorable to buyers, meaning homes take significantly longer to sell and may not receive the original asking price. Anything in between is a strong, balanced market.

Absorption Rate Charts

King County - Condos Only 2004 to 2007

King County - All Residential (Condos and Single-Family) 2004 to 2007