Jumbo absorption rates
- May 17, 2009 - by Ben Goheen, in General, with no comments -
A look at the absorption rate for homes that require a jumbo mortgage.
Let’s look at the absorption rate for homes in the Stillwater area that require a jumbo mortgage. The absorption rate is the ability of the real estate market to absorb or sell all of the houses for sale in a given amount of time. A jumbo mortgage is a mortgage with a loan amount above the Fannie Mae and Freddie Mac standard for conventional conforming loan limits, currently at $417,000.
To sell all houses currently for sale above $417,000 it will take approximately
92 weeks
This translates into nearly 21 months on the market – OUCH! A 6 month absorption rate means that the market is balanced and doesn’t favor buyers or sellers. We’re obviously still in a buyer’s market, especially if you’re looking at higher end homes.
DISCLAIMER: This assumes these current listings will sell for $417,000 or above and that the loan amount will also be that high.