The Santa Monica real estate reports below show the market absorption trend for single family homes.
What is an absorption rate? This shows the rate at which inventory is being sold and is calculated by the number of homes on the market divided by the number sold in a month. This helps in determining the pricing of homes being put on the market and what kind of market it is. If you have a 10 month selling cycle and want to sell in 5 months you would need to price your home a little lower than the 50% average. Also a 6 months selling cycle is a balanced market. Above that is a buyers’ market and less than 6 months inventory is a sellers’ market.
The Santa Monica real estate market absorption trend shows a seller’s market.
The Santa Monica luxury housing market is very much still a buyer’s market.