Puget Sound Absorption Rate - January 2009

Absorption rates are based on the ratio between active listings and the net number of homes that are in the sale process. As you review the charts below, it’s apparent that we are experiencing the (usual) annual rise in sale activity.

I will keep my commentary to a minimum on these statistics because, despite all the optimism and speculation by the local real estate gurus, these sales numbers hardly predict what’s going to happen this year. There are macro-economic factors at play right now that boggle the mind: incredibly low interest rates, home prices eroding, a possible glut of lower-priced/bank-owned properties hitting the market, a virtual moratorium on lending by the banks, a total lack of confidence in the international financial markets and an opposition party in the US Congress determined to play partisan politics rather than move forward with a stimulus package. It all seems a bit surreal.

Statistical Charts courtesy of Alan L. Pope & Associates Inc.

Statistics sometimes lie courtesy of mac steve