People love to talk real estate and I get asked all the time how the market is doing. One benchmark we Realtors use is the absorption rate. This rate illustrates how fast homes are selling in a particular market.

What market is off the chain right now in Nashville? Well….most any of the neighborhoods in the “inner 440” ring. But if you ask Realtors where it is toughest to find homes for their buyers….they all say in unison, “East Nashville”.

37206 includes the most popular East Side ‘hoods like Lockeland Springs, Edgefield, Eastwood, Greenwood Neighbors, East End, Shelby Village, a good portion of Rosebank, and on out towards Inglewood where it turns into 37216.

For our purposes here–I will analyze 37206 for absorption rate. As of today, in the past 365 days 504 homes have sold in 37206. That comes to 0.724206 sales per day. Currently on the market in 37206 are 106 homes. You take the number of homes available (106) and multiply them by the daily rate which comes to:

106 X 0.724206= 76.765873

Take that number and divide it by the days in a month:

76.765873/30= 2.558862 months of supply.

So 37206 has a 2.6 month supply of homes. Meaning, if sales occur at the same rate as averaged out over the last year, the 106 homes currently on the market will all be sold in the next 2.6 months. What does that mean? Are we in a seller’s or buyer’s market? 6 months is the generally accepted breaking point between a buyer’s and seller’s market. So we are far less than 6 months and that means it is a strong seller’s market right now.

It may be crazier yet though. Of those 106 homes for sale, 52 are under contract. That means only 54 are available to buy. If you consider those 52 as sold and only 54 being available…our “real” absorption rate is 1.3 months.

If you know someone that needs to sell real estate, right now is a great time to do it!