Today there are 245 homes for sale in the Dayton Valley area. Of the 245 home available, 132 are distressed (either short sales or bank owned properties). That means 53.8% of the market of available homes is distressed. This is substantially higher than Carson City at 29% and the Carson Valley at 17.9%.
Currently there are 42 homes pending in Dayton, which is a good sign, however, only 12 homes sold for the month of January.
Let’s talk about the health of the Dayton Valley real estate market. One great way to measure the health of any real estate market is to calculate the absorption rate. The absorption rate is the mathematical representation of the relationship between supply and demand.Â The total amount of available product is divided by the total amount of product sold in the previous month.Â The resulting number represents the number of months it would take, at that same pace, to sell the entire inventory of product.
For comparison, a ‘normal market’ exists when the Absorption Rate is between 5 and 6 months. A ‘sellers market’ exists when the Absorption Rate is lower, typically 1-4 months. A ‘buyers market’ exists when the Absorption Rate is higher than 6 months.
Here is how Dayton measures up:
- Dayton currently has 245 homes on the market.
- In January , 12 homes sold
- 245 / 12 = 20.42 months
- Dayton is a ‘buyers market’ – no big surprise right?
The Absorption Rate is not the only statistic to follow. However, it is recommended to consider it, in addition to other statistics, such as average sold price, days on market, and other factors, when determining the health of the market. Watch for us to post a 2008 in Review historical view of real estate sold in Dayton Valley to provide more information on the Dayton real estate market.