Absorption rate, also referred to as “inventory levels” or “months of supply”, gives you an idea of the number of months it will take for the current inventory to be sold out based on the last 12 months of sales.
Housing prices stabilize when supply and demand come closer together. Generally speaking, 5-6 months of supply is “normal”. Less than 5 months of supply will result in appreciating home prices (Seller’s Market), while 7 months or more of supply will result in depreciating home prices (Buyer’s Market).
Following the 1st Quarter of 2020, New Hanover County is showing a total of 2.3 months of inventory for existing home sales (for comparative purposes, it peaked at 22.6 months in 2009); Brunswick County is at 4.3 months (peaked at 20.0 months in 2009); and Pender County is at 4.2 months (peaked at 22.1 months in 2009).
As you can see from the three county charts below, inventory levels vary by price segment. Take a look at the absorption reports for a better idea of where your house stands in the market, and contact an Intracoastal Realty agent to learn about the supply and demand for your specific neighborhood.