There are some fantastic homes on the market on the West Bank that are just sitting there. It used to be that if a house was listed for more than a couple of months, the safe assumption was that there was something wrong with it – priced too high, poor condition, funky floor plan or any other number of things that would cause a buyer to pass it by.
In today’s market, we can’t make those same assumptions. Even when priced perfectly and in show ready condition, some homes are losing out because the supply of available properties is greater than the number of qualified buyers.
What’s an Absorption Rate?
An absorption rate is an estimated of how long it will take the current inventory of homes to sell. It’s a moving target, but the best we can do is base it on the most recent month of sales and make a projection. Less than 6 months of inventory is a seller’s market, 6-7 months of inventory is a pretty balanced market and over 7 months of inventory is a buyer’s market. If your neighborhood is a buyer’s market, patience is going to be a must while waiting for the right buyer to come along.
West Bank Absorption Rates
Across the West Bank, there are currently 1,199 single family homes for sale. In May, there were 136 sales. That means it would take almost 9 months to sell the existing listings – a buyer’s market. This doesn’t account for any new homes that may come on the market in the meantime. It’s a snapshot of what’s happening right now.
How does this breakdown by zip code?
Belle Chasse (70037) 8 sales in May, 44 active listings, 5.5 month supply of listings
Algiers (70114, 70131) 37 sales in May, 328 active listings, 8.9 month supply of listings
Gretna (70053) 7 sales in May, 81 active listings, 11.6 month supply of listings
Terrytown (70056) 13 sales in May, 161 active listings, 12.4 month supply of listings
Harvey (70058) 35 sales in May, 149 active listings, 4.3 month supply of listings
Marrero (70072) 23 sales in May, 251 active listings, 10.9 month supply of listings
Westwego (70094) 12 sales in May, 144 active listings, 12 month supply of listings
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