Absorption

Aurora South (AUS)

CMA – Residential (houses) – 3,706 sales in the past 12 months = 309 per month.  1,879 active listings = 6 month supply.  Median price = $224,900.

CMA – Condo (including townhouse) – 1,596 sales in the past 12 months = 133 per month.  1,219 active listings = 9 month supply.  Median price = $127,900.

In plain English – if you want to sell a house in Aurora, it’s going to take 6 months.  If you want/need to sell in less than 6 months, it better be priced aggressively and/or you better have a good real estate agent.  For a condo, it will take 9 months.  If you’re in a hurry to sell a condo or townhouse — good luck.

Compare these figures to June, 2006.  Overall slight decrease in the number of sales and number of listings.  Condo absorption rate went from 10 months to 9 – moving in the “right” direction.

The median price figures are inflated by seller concession a/k/a rebate.  I estimate $5,000 is the typical seller concession.  In plain English – the typical condo sells for $122,900 (paid to the seller) with a $127,900 mortgage loan.

Way more than 50% of all transactions involve a mortgage of more than 100% paid to the seller.  For condos – I estimate that 90% of all transactions involve a seller concession and therefore – a mortgage loan of more than 100% of the amount paid to the seller.  For a detailed example, see the transaction at 12403 E Tennessee Cir #E.  The example includes a copy of the appraisal by Dan Grant of Freedom Appraisal and the MLS listing.

tags

Absorption seller+concession daniel+a+grant rebate condo

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