One way of measuring demand in the local maket is to look at lot sales. For most of the past decade, Harford County has averaged 10 to 15 lot sales per month. Over the past couple of years, the pace of sales has decreased by approximately 75 percent. Year to date, there have been 28 building lot sales as reported by MRIS. This is an absorption rate of 3.1 sales per month. The current active inventory is 292 as of this posting. Given the current absorption rate, there is a a 94 month supply of lots for sale. This means that if no other lots come on the market, it would take 7.8 years to sell all of the inventory. All of this inventory relative to demand has placed a downward pressure on prices. My analysis is showing anywhere from 20 to 30 percent drop in lot prices over the past couple of years.
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