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 of homes 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 3rd Quarter of 2022, we are seeing a low but increasing amount of inventory. New Hanover County is showing a total of 1.7 months of inventory for home sales (up from 0.6 months in Q1 2022); Brunswick County is at 2.1 months (up from 0.8 months in Q1 2022); and Pender County is at 1.1 months (up from 0.6 months in Q1 2022).
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 and/or price point.
Bottom Line: There are opportunities right now for both buyers and sellers. Generally speaking, buyers have a bit more room to negotiate on price and repairs and less pressure to make lightning-fast offers. Sellers can take advantage of the tremendous equity they have built up over the past few years, and the fact that there is still a limited inventory of homes for sale in the marketplace.