Santa Monica Condos for Sale – What Gives?

by WestsideDB on October 1, 2009 · 0 comments

in Local Real Estate Statistics and Trends

September Santa Monica Condo Stats Santa Monica Condos for Sale   What Gives?

September Santa Monica Condo Stats

If you saw the last post about single family homes for September in Santa Monica, you might wonder why these numbers seem a bit further apart.

For interests sake, lets calculate the absorption rate for condos in Santa Monica.

The Definition of Absorption Rate:

Number of weeks it takes to sell the current inventory at the present rate of sales.

Absorption rate is calculated as follows:

# of listings active = A

# sold last month (assume calendar month) = B

# sold B (x) 12 months = C

C/ 52 weeks = D units per week sold

A/D = E (Absorption Rate)

So, let’s look at what this translates to in this month’s Santa Monica condo market:

A= 48

B= 29

C= 321 (per the MLS – number might acutally be higher due to private sales)

321/ 12 months = 26.75 (D – units per week sold)

1.79 — Absorption Rate

So what the hell does this mean to you and me?

It should mean that a condo, if priced correctly, should take 1.79 weeks to sell in the current market. Which makes no sense since it took an average of 89 days to sell.

Hmm… Who has thougths?

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