Londonderry, NH

The news for Londonderry home owners trying to sell their houses, or thinking of selling their homes appears to be getting better. Today I calculated the absorption rate for Residential and Condominum properties in the Town. The absorption rate is a simple calculation to determine how long it will take the market to absorb the current amount of inventory that is for sale.

Inorder to calculate the absorbtion rate you take the total amount of solds for Residential and Condo's last year (344), and divide this by 12 to get a per month sold amount of 28.67. Then take the amount of Residential and Condo's that are activily on the market (189 listings) and divide this by the per month sold figure from 2007:

189 Current Listings divided by 28.67 solds per month = 6.5 months absorbtion rate.

The absorption rate of 6.5 months means that at this current time it will take approximately 6.5 months for the current market to absorb the listings that are currently on. When looking at absorbtion rates the general rule of thumb is that if the absorbtion rate is above 6 months, you are in a Buyers Market. If the number is below 6 months you are moving towards a Sellers Market. This current number of 6.5 means were still in a Buyers Market in Londonderry, but we are doing much better.

Inorder to put Londonderry's current market situation into perspective, currently the Town of Windham has a 9.72 absorption rate and Rockingham County's absorption rate is at 10.43. Sellers in Londonderry should take a lot of comfort in this number, since it shows that compared to the County we are doing fairly well.

**Absorption Rate figures based off of properties between $100,000 - $900,000**

The Market Absorption Rate is a theoretical means of measuring where the market is - are we in a buyers, or sellers market?

As of today January 6th, there are 94 Residential Homes for sale in Londonderry, NH.

For the month of December 8 Residential Homes sold in Londonderry, NH.

So, taking the 1 month sales figure of 8 homes for Deceember, and dividing it into the total inventory of 94 we get 11.75.

That number 11.75 represents the theoretical number of months of inventory that is currently on the market in Londonderry. A true Sellers Market would be indicated by less than 6 months of inventory. 11.75 means that in the month of December, it was a buyers market but not as much as in November.

Different conditions may exist at different price points.

Sept 2007 - 7.83

Oct 2007 - 8.13

Nov 2007 - 16

Dec 2007 - 11.75

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