Puget Sound and King County Absorption Rates – November 2009
November Brings a Sharp Decline in Inventory Absorption
November wasn’t exactly a watershed month for property sales. Even though a number of local industry gurus claimed that the market showed signs of recovery, all one needs to do is look at the absorption rate to see if statements like this are really valid:
“This winter will not be ‘business as usual’ for the housing market,” said Lennox Scott, chairman and CEO of John L. Scott Real Estate. “Thanks to historically low interest rates, adjusted home prices, and the passage of the extended/expanded tax credit, we are getting a running start on the New Year,” he added.
If Mr. Scott’s statement is really true, why have the absorption rates dropped (fairly significantly)? The tax credit, low interest rates and lower home prices are already in place.
PUGET SOUND ABSORPTION RATE: PUGET SOUND
Click on the chart for a larger view
Click on the graph for a larger view
KING COUNTY ABSORPTION RATE – NOVEMBER 2009
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Click on the graph for a larger view
The fact is, the number of pending property sales in Puget Sound and King County were down. The 18% drop in King County in the absorption rate doesn’t exactly say “we’re getting a running start.”
