It took 12 years, but Orono is an overall home seller’s market again
The city of Orono’s Absorption Rate has fallen below a 5 months supply, to 4.9 (based on the 6 month rolling average method), for the first time since 2006. Absorption Rate, or the measure of homes on the market divided by the average number of homes sold over a set period of time (in this case 12 months), is a strong indicated of market balance. Above a 6 months supply is considered a buyer’s market. During the height of the real estate bear market, the city of Orono was sitting above a 25 months supply. With listing inventory continuing to tighten, Orono home sellers are seeing decreasing average days on market, increased median price per square foot, and less showings before getting an acceptable offer. The median accepted offer price is now 97% of the list price, a YOY increase for February.
Price point matters
The tightening housing market in Orono is price sensitive. The data shows an extreme seller’s market for listings under 699k. Listings in the 699k to 1.295m segment are still in a slight buyer’s market, although it is much tighter than last year at this time. Listings in the upper echelons of the market are seeing even more competition than last year. This is forcing sellers to take offers which are 93.4% of the last list price on average, far below other market segments.
House listings are up overall, but especially at the top of the Orono market
Although new listings are up across all price points in the past 12 months, they vary by market segment. There were almost 10% more listings in the 329k to 699k range YOY. The next market tier produced 11% less new listings in the 699k to 1.295m range. New listings above 1.295m ballooned by a whopping 58% to 109 since February 2017. Since there were just 31 sales in that time frame, (an increase of just 3.3% YOY), home sellers have been experiencing downward price pressures compared to the same time frame in 2016-2017.
All information was pulled from NorthstarMLS on 3/7/2018 and is deemed reliable but not guaranteed. If you’d like to know how your home fits into this complex market, drop us a line at our contact page.