Pricing To Sell in St. Charles, IL: Consider the Absorption Rate

By
Real Estate Agent with Baird&Warner Fox Valley

Homeowners in St. Charles, IL who are thinking of selling their home need to consider the amount of inventory that they will compete with. Inventory sounds like boxes in a warehouse, but a successful seller needs to "think like a buyer" who is evaluating all the choices he has on the market. Realtors speak of "inventory uptake", or "absorption rate" which is the number of days or months or years it will take to sell off the current inventory at the current rate of sales.

Let's look at a real price point in St. Charles, IL: homes priced at $450,000 to $600,000. There are 109 active listings and 10 under contract. There have been 50 closed sales in the past six months. The absorption rate is 13 months, the amount of time it will take to sell off the inventory at 8.33 houses per month.

The analysis of the closed sales shows even more relevant data. A good proxy for value in a problematic market is assessed value (what the tax assessor says your home is worth). The assessed value of the closed sales shows that the houses that sell have an assessed value proportionately greater than the listings still on the market.

Houses at this price point in St. Charles, IL sell when they are priced at about 80% of assessed value. Put more simply, when a house sells for $550,000, it is a home valued at $700,000. The absorption rate of houses priced at 80% of assessed value is 30 days. The absorption rate of houses priced at 100% of assessed value is 10 months. Unfortunately, the absorption rate of houses priced at 120+% of assessed value is pretty much "never".

If you are thinking of selling your home in St. Charles, IL, you should know the absorption rate for your price point. All real estate is local, so if you would like help figuring out what your home is worth, and what you should do to sell it in today's market, give me a call and let's talk.

 

Homes Sales in St. Charles, IL

Dynamic Chart Shows 3 Years of Sales Data

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This post was written by Leslie Ebersole of Baird & Warner Real Estate.
Use or reproduction of the material published on this site is expressly prohibited
without the express written permission of the author.

 

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Topic:
ActiveRain Community
Location:
Illinois Kane County Saint Charles
Groups:
HyperLocal Neighborhood and Community Posts
Tags:
st charles il homes for sale
st charles il real estate agent
st charles il market data
pricing to sell

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Rainmaker
1,202,503
Carla Muss-Jacobs, Principal Broker/Owner
Buyer Focused ~ Buyer Results
BuyersAgentPortland.com | (503) 810-7192 Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% of the Time

Supply and demand.  You've done a nice job "illustrating" the point.  :-)

October 19, 2010 01:54 PM
Rainer
87,686
Rich Edgley
Greater Chicagoland Home Inspection

Leslie-

You are on fire with your blogging.  I finally got a chance to sit down and read.  great work.


Rich

October 24, 2010 06:29 PM
Rainer
171,789
Lisa Orme
Broker/Realtor, ABR, CRS,GRI, PSCS, SFR, Notary Pu
The Master's Key Realty LLC -Windsor, CT - HARTFORD COUNTY

Nice job on absorption rates - and your graphs are WONDERFUL for getting your points across. Nice job! 

October 24, 2010 10:56 PM
Anonymous #9
Anonymous
Anonymous

Thank you for this!  Where did you get your charts from?

December 30, 2010 11:04 AM
Rainmaker
420,591
Leslie Ebersole
REALTOR - Chicagonulls Western Suburbs
Baird&Warner Fox Valley

#9; I see that the Altos Research chart is missing. Dont' know why the link is broken. In any case, go to Altos Research.com or send me your email address and I can get you all kinds of charts!

December 30, 2010 12:23 PM
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Rainmaker
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Leslie Ebersole

REALTOR - Chicagonulls Western Suburbs
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