West Roxbury Single Family Real Estate Market Heating Up

Posted by: Tim White
Posted on: Thursday, June 7, 2007 at 10:00 am
Categories: Financing, Home Selling, Home Buying, Market Conditions, West Roxbury

West Roxbury Absorption

Among the important real estate indicators we look at when determing the overall viability of the real estate market in West Roxbury is the basic absorption of housing inventory over time. The term “basic absorption” simply means the rate at which the market absorbs housing inventory, or rather the amount of time it would take for current supply of inventory to dry up.

When analyizing basic absorption it’s important to consider a few key factors:

  1. Residual Inventory–the # of homes for sale currently in a given market at specific points in time
  2. New Inventory–The # of new listings introduced to the market at same points in time, thus adding to the Residual Inventory
  3. Listings Under Contract–The # of listings that have placed under agreement during the same period of time
  4. The movement of the above mentioned items (up or down) over time

Typically when these items converge in a trend line format, it’s a good indication that a market is heating up.

For example, the above graph which represents the basic absorption of single family inventory in West Roxbury, MA clearly shows these trend lines are converging for the month of May, 2007. This is a good sign–a sign of a healthy market where equilibrium exists in terms of the relationship between residual inventory, new inventory and inventory under contract. It definitely appears as if the single family market in West Roxbury is improving.

Any thoughts?

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3 Responses to “West Roxbury Single Family Real Estate Market Heating Up”

  1. Robert Holley on June 7th, 2007 11:00 am

    The market sure seems to be stronger; in addition to these stats, it’s intersting to note that average SF sale price in W Rox is about the same as a year ago…
    $425,371 for Apr-May 2007 compared to $429,773 (down less than 1%) and list to sale price ratio is 96% in Apri-May 2007 compared to 97% for Apr-May 2006. And, perhaps most telling, 20% of the 163 properties on the market in Apr-May 2006 sold during that period, while 33% of the 127 properties offered in Apr-May 2007 went to closing. Similarly, there was a 44% increase in the number of other properties under contract in April-May 2007 (39) compared to just 27 for Apr-May 2006. While more seems to be selling this year, it’s taking considerably longer, 106 days for Apr-May 2007 compared to 64 for the same period in 2006.

  2. Deirdre W. on June 7th, 2007 4:35 pm

    Great stuff!

    I can vouch for the fact that the market heating up! I just sold a property in the area in essentially one day at the first open house (which was the first day on the market). The market is recovering and is doing very well! Jump in… the water is just right!

  3. Maureen O'Keefe on June 13th, 2007 8:13 am

    Thanks Tim..I have a client who was askng about those stats for condos in W.R. Got anything to share with him?

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