A house on the big pocket calculator to determine the estimated value of a New Haven home.

There are many factors to consider in today’s real estate market if you’re thinking of putting your New Haven home up for sale.  A question often asked is “How Much Is My House Worth in New Haven?”

Seeing that your home is probably your largest asset selling it is probably one of the most important decisions you will make in your life.

What’s Your House Worth? Find Out Here!

Price, condition and location are three essential components in the sale of a home, however there are other things to take into consideration as well.

In addition to getting an accurate assessment of the value of your home the Days on Market and Absorption Rate are a couple of other components that should be taken into consideration to correctly position your home on the market.

🗓️ What is DOM? 

Days On Market
DOM is an abbreviation for Days On Market a real estate term that represents the length of time a home for sale has been active on the market before one of two thing happens; either an offer is accepted or the listing agreement between the seller and the real estate broker ends.

It’s important to note that typically properties with a longer DOM will require a reduction in price than listings with a shorter DOM due to the perception that the property could be overpriced or may be less desirable.

This number can sometimes be reset if a listing is withdrawn or expires and comes back on the market again as a new listing.  Your real estate agent should have the ability to research the listing history of a property and can provide a more adequate picture of how long a property has been on the market.

Knowing the average DOM can give you a fairly good indication of how long it will take for your home to sell.

Days On Market Year to Date

New Haven Single Family Homes

⚖️ What is the Absorption Rate?

Absorption rate is the rate at which homes sell in an area.

The definition of the absorption rate is the rate at which available homes are selling in a specific area in a specific time period.

It is calculated by dividing the total number of active homes on the market by the average number of sold homes per month.

Absorption Rate Analysis
6 Months Supply = Balanced Market
Less than 6 Months Supply = Seller’s Market
More than 6 Months Supply = Buyer’s Market

The Data

Here’s how I calculate the absorption rate using New Haven as an example based on October 31, 2017 single family residential homes data provided by the Connecticut Multiple Listing Service.

  • Time Frame = 12 months (total months from October 1, 2016 to October 31, 2017)
  • Number of Sold Homes = 406 (from October 1, 2016 to October 31, 2017)
  •  Number of Active Homes = 105 (at the end of October 31, 2017)

Calculations

  • Rate of Home Sales = 33.8 –  34 homes are sold every month.  This number is found by taking 406 divided by 12 (Number of Sold Homes/Time Frame)
  • Absorption Rate = 3.0 Months. Found by taking 105 divided by 34  (Number of Active Homes/Rate of Home Sales)

❓ What does this mean for a New Haven home seller?

At the current rate if there is no change in market conditions and if no new listings come on the market it will take 2.8 months for the current inventory to sell.

The absorption rate for a balanced market is typically around 6 months.  Knowing whether the market is more balanced or trending towards a seller’s or a buyer’s market is an important piece of information to know in order to strategically price your home based on the current supply and demand.

Understanding the general direction of the current New Haven real estate market conditions is of vital importance to home sellers in order to help you make a more informed decision on pricing your home for sale.

🏘️ What’s the Average Home Price in New Haven?

Average Sold Price Year To Date

Sale Price – Average – Single Family Homes

Average Sold Price Over The Past Five Years

Sale Price – Average – Single Family Homes

🏠 Homes For Sale in New Haven at Average Price

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🏡What’s the Median Home Price in New Haven?

Median Sold Price Year To Date

Sale Price – Median – Single Family Homes


Median Sold Price Over The Past Five Years

Sale Price – Median – Single Family Homes

🏠 Homes For Sale In New Haven At the Median Price


🗯️ New Haven Home Value Estimator

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