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- 🔥 The Top 15 Trending STR Homes for Sale
🔥 The Top 15 Trending STR Homes for Sale
📣 Absorption Rate: The Key Metric for Smarter Real Estate Investment Decisions
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Hello STR Scout Members,
In this weeks issue:
🏡 STR Classifieds: Explore the top 10 trending Airbnb properties for sale.
📣 Absorption Rate: Learn how this key metric can help you make smarter buying and selling decisions.
📰 News Nuggets: Airbnb, housing, international spotlight on Panama, and economic news.
Happy Scouting!
Andy Thoms
STR Scout
💡 Absorption rate is the ultimate gauge for understanding hyper local real estate market trends, revealing shifts in demand and price direction with unmatched clarity. Formula: Absorption Rate = (Properties Sold / Total Active Listings).
🌲 $845K | Skykomish, WA: A must see! Iconic Tye Haus A-frame cabin with global acclaim and 130k+ Instagram followers! Cozy 1BD/1BA plus loft, gas fireplace, updated interiors, hot tub, and multiple decks. 15 mins to Stevens Pass. Turnkey with business and social media assets. 12% CAP rate! View Post
🌊 $330K | Galveston, TX: Profitable 2BD/2BA beachfront condo, ideal for investors. Panoramic Gulf views from 7th-floor balcony, fully equipped kitchen, new AC, appliances, and paint. Includes rental history, large Facebook following, pool, tennis, 24-hour security, and private parking. View Post
🏡 $479K | Springville, CA: Unique Dome Home on 1.52 Acres. 3BD/2BA, 2,015 sqft architectural gem. Features mid-century fireplace, floor-to-ceiling windows, loft, and game room. Successful Airbnb, sleeps 9, bookings through Jan. Private setting with wildlife. View Post
🌴 $950K | Marathon, FL: Tropical oasis 3BD/2BA with heated saltwater pool, full tiki bar, hot tub, and lush landscaping. Outdoor shower, RV parking, and close to top attractions like Sombrero Beach, Dolphin Center, and Seven Mile Bridge. Option to buy neighboring property for a combined paradise. Seller prefers pacakge deal (with listing below). View Post
🌴 $749K | Marathon, FL: 2BD/1BA tropical retreat with volleyball court, fire pit, hot tub, and lush coconut palms. Ideal for entertaining with bocce pit and boat/truck parking. Option to buy neighboring property for a combined oasis. Close to Sombrero Beach, Dolphin Center, and Seven Mile Bridge. Seller prefers package deal (with listing above). View Post
🏞️ $1.5M | Pigeon Forge, TN: New 8BD/8BA luxury STR, sleeps 30+! Turnkey with furnishings, each bedroom has en-suite bath. Features game room, movie theater, indoor pool house, and 3,900 sqft unfinished basement on 1-acre lot by a scenic creek. City utilities and commercial sprinkler system. Completion by EOY! View Post
🌲 $850K | Sevierville, TN: Off-market 3BD/3BA log cabin in the Smokies with creative financing options (contract for deed or lease purchase) allowing tax benefits. Fully furnished, remodeled bath, upgraded kitchen. Airbnb with $85K gross income and potential for higher occupancy. Down payment: $85K, total monthly payment: $4,480. Close before year-end for tax deductions! View Post
🌊 $825K | Port Aransas, TX: Stunning 3BD/3BA coastal home in Paradise Point. Features hardwood floors, granite counters, open floor plan, and furnished outdoor living space. Community pool, 1-car garage, and close to beaches, dining, and shopping. View Post
🏔️ $580K | Burnsville, NC: Turnkey 4BD/2BA STR earning $77K+ annually, 4.93-star reviews! Fully furnished, updated kitchen, new roof, and windows. Prime location near town center, Hatley Pointe Ski Mountain, and Nu-Wray Inn. Hot tub-ready deck space. No STR restrictions. View Post
⛷️ $1.8M | WV Ski Resorts: Two high-earning properties (5BD/4BA & 9BD/6BA) generating $270K in 2024 rental income. Includes property management software, guest database, social media presence, and vendor contracts. Financing available. Serious inquiries only. View Post
🌳 $399K | Galena, IL: Spacious 4BD/3BA home in Galena Territory on .72-acre wooded lot. Dramatic open floor plan, cathedral ceilings, 4-seasons room, and updated kitchen. Near golf, lake, pools, and trails. View Post
🏔️ $2.1M | Monument, CO: Thriving vacation rental near Colorado Springs with $210K avg annual revenue and $100K future bookings. Airbnb-friendly, fully managed with systems in place. Turnkey investment opportunity! View Post
🏡 $275K | Jacksonville, FL: Charming 2BD/1BA renovated block home in Ortega. Features updated kitchen with granite, LVP flooring, cozy fireplace, and fenced yard with covered patio. New roof (2021), near parks & shopping. Motivated sellers! View Post
🌄 $450K | Waynesville, NC: 2BD/2BA mountain retreat with rec room, stunning year-round views, and spacious deck. Successful vacation rental, 20 mins to Maggie Valley & Lake Junaluska. Furnishings convey. View Post
🏝️ $580K | Bradenton, FL: Turnkey 2BD/2BA pool home with $80K gross revenue in 2023. Fully renovated with high-end finishes, open floor plan, tropical landscaping, and a large deck. No HOA, minutes to Anna Maria Island beaches. View Post
Absorption Rate: The Key Metric for Making Smarter Real Estate Investment Decisions
For real estate investors, whether focused on long-term rentals, short-term rentals (STR), or looking to strategically time your next buy or sell, understanding market trends is essential. One of the most valuable metrics for gauging these trends is the absorption rate.
This powerful tool reveals how quickly properties are moving in a market, helping you make informed, strategic decisions on when to invest or sell for maximum returns.
What is Absorption Rate?
In real estate, the absorption rate is a measure of how fast available properties in a specific market are being sold. It’s calculated by dividing the number of properties sold in a defined period by the total number of active listings, giving a percentage that represents market demand versus supply.
To understand how this plays out in practice:
20% and Above: Signals a seller’s market. High absorption rates mean strong demand, with properties selling quickly and often above asking.
15% to 20%: Indicates a neutral market with balanced conditions, creating fair leverage for both buyers and sellers.
Below 15%: Suggests a buyer’s market, where inventory exceeds demand, leading to more favorable pricing and negotiation opportunities for buyers.
These benchmarks help real estate investors and agents make better choices on timing investments and pricing strategies, while also offering clues to market health for specific property types.
Why Real Estate Investors Should Use Absorption Rate
For real estate investors, knowing the absorption rate can unlock key insights into market conditions, helping avoid overpaying in a heated market or buying into a cooling market at peak prices. By understanding how fast properties are selling, you can identify whether to buy, sell, or hold, making data-backed decisions to maximize return on investment (ROI).
How to Use Absorption Rate Strategically for Real Estate Investments
Whether you’re targeting long-term rental properties or evaluating short-term rental (STR) markets, here’s how real estate investors and agents can use absorption rate to optimize their strategies:
For Buyers: 3 Smart Investment Strategies
Pinpoint Emerging Buyer’s Markets
A decreasing absorption rate in a high-demand area could signal an upcoming buyer’s market. This trend gives investors and agents an edge in negotiating deals, as sellers become more motivated in response to shifting demand.Analyze Neighborhood-Level Demand
Absorption rates vary significantly across neighborhoods, even within a city. While an entire market may lean toward sellers, certain neighborhoods might still offer buyer’s advantages. Monitoring absorption rates at the neighborhood level helps investors and agents uncover undervalued areas with potential for appreciation.Evaluate Rental Market Potential for Short-Term Rentals
STR investors can use absorption rates to assess rental demand in vacation markets or high-traffic areas. High absorption rates might reflect seasonal demand or popularity as a travel destination, signaling a promising environment for STR investments. Conversely, lower rates could indicate challenges in occupancy or regulatory issues affecting profitability.
For Sellers: 3 Ways to Maximize Your Real Estate Sales Strategy
Choose Optimal Listing Timing
Absorption rates help sellers determine the best time to list. In a high-demand period (seller’s market), sellers can expect faster sales, possibly with multiple offers. During lower-demand periods, sellers might choose to hold off or price competitively to attract interest.Set Pricing with Market Awareness
Sellers can adjust pricing based on current absorption trends. In a cooling market, pricing competitively from the start can help reduce time on the market. Conversely, a high absorption rate may support a more aggressive pricing approach, as buyers are motivated to act quickly in a tight inventory market.Tailor Listing Strategy by Property Type
Different property types perform differently within the same market. For instance, condos may have a high absorption rate in vacation zones popular with short-term rental guests. Emphasizing these features in marketing and staging can increase appeal and speed up the sale process.
Coming Soon: Your Own AI Agent, 24/7, with Spatial Hub’s Absorption Rate Tool
The key to successful real estate investing is understanding that all real estate is local. Broad market trends only tell part of the story. Imagine having your own AI agent working for you 24/7—an agent that lets you get hyper-local, analyzing absorption rates down to specific neighborhoods, or even drawing a custom boundary around the area you’re targeting.
Spatial Hub’s upcoming absorption rate tool will allow you to set your own buy box criteria, define boundaries by zip code, neighborhood, or even proximity by driving or walking distance, and pinpoint the best investment trends based on local demand.
With Spatial Hub, this vision is coming to life. Soon, you’ll have a powerful tool in hand that can help you locate where demand is strongest and identify the best opportunities, whether it’s a single property, neighborhood, city, or an entire neighborhood. Your own AI agent will be there to analyze real-time data around the clock, putting the critical insights into your hands for smarter, data-driven investing.
For real estate agents, investors, and short-term rental owners, timing is everything. By understanding and applying absorption rates, you can stay ahead of market trends, fine-tune your buy and sell strategies, and make informed decisions in any neighborhood you’re eyeing.
Stay tuned to STRScout.com for tools that bring you closer to the insights you need—right when you need them most.
Airbnb
🏠 Global Crackdown on Short-Term Rentals
Cities worldwide are tightening rules on short-term rentals to combat housing shortages. Barcelona plans to phase out tourist rental licenses by 2028, while Málaga, Spain, recently banned new holiday rental permits in key areas to address affordability issues. Read more
🏡 U.S. Short-Term Rental Growth Slows
The U.S. short-term rental market has seen a significant drop in growth, now at 10% from a peak of 20% growth two years ago. Contributing factors include increased demand for long-term rentals and stricter local regulations, particularly in urban areas. Read more
🏘 Airbnb’s Impact on Housing Costs
Research suggests that platforms like Airbnb contribute to housing cost increases and gentrification in some cities. Cities such as Paris and Barcelona have enacted rules to mitigate these impacts and balance community needs with tourism. Read more
🏢 Airbnb Launches Co-Host Network
Airbnb’s new Co-Host Network connects experienced hosts with newcomers, providing operational guidance and support to improve service quality and customer satisfaction. Read more
🏠 Airbnb Expands Beyond Short-Term Rentals
Airbnb plans to diversify its offerings by introducing co-hosting services and relaunching 'experiences' to attract a broader customer base. This strategic move aims to reduce reliance on short-term rentals and tap into new revenue streams. Read more
🏘 Airbnb's Commitment to Environmental Sustainability
Airbnb has outlined its environmental sustainability efforts, including reducing corporate emissions and promoting eco-friendly practices among hosts. These initiatives reflect the company's dedication to environmental responsibility and sustainable travel. Read more
🏢 Airbnb's Financial Performance in Q1 2024
Airbnb reported strong financial results in Q1 2024, with 133 million nights and experiences booked and a revenue increase of 18% year-over-year. This growth indicates a robust recovery in the travel industry and increased demand for Airbnb's services. Read more
Housing
🏠 Homebuilders Face Challenges Amid Housing Shortage
U.S. homebuilders are grappling with high mortgage rates and rising construction costs, exacerbating the housing shortage. This pressure threatens to worsen the housing crisis as builders struggle to keep prices affordable while meeting demand. Read more
🏡 Home Prices Hit Record High, Growth Slows
The S&P CoreLogic Case-Shiller report indicates that home prices in major U.S. metro areas have reached a new high. However, the pace of growth has slowed, with a 5.2% year-over-year rise, down from 5.9% in July, due to high mortgage rates and affordability challenges. Read more
🏘 Lennar Mortgage Warns of 'Vicious Cycle' in Housing
Laura Escobar, president of Lennar Mortgage, warns that the U.S. housing market may enter a "vicious cycle" if inventory shortages and high mortgage rates persist. She emphasizes the need for policy changes to ease supply bottlenecks and reduce costs, as the country faces a deficit of 1.5 million homes. Read more
🏢 Housing Costs Undermine Economic Success
Investopedia highlights that while the U.S. economy is performing well overall, high housing costs remain a significant drag. Core inflation continues to exceed targets, largely driven by housing expenses, and a decline in new home construction is curbing economic growth. Read more
International Spotlight
🌍 Panama: Latin America's Hidden Gem for Global Citizens and Investors
Panama is emerging as a top destination for investors and expatriates, thanks to its strategic location, economic stability, and favorable residency programs. The article highlights Panama's residence-by-investment program, allowing global investors to gain residency status with a minimum investment of USD 100,000, with citizenship eligibility after five years. Read more
🏡 Living in Panama: The Expats' Guide
This guide outlines Panama’s residency options, including the Friendly Nations Visa and Pensionado Program, attractive to expats seeking an affordable lifestyle. Residency applications require assistance from Panamanian immigration attorneys to navigate multiple visa options. Read more
🏢 Panama Residency: How to Get Permanent Residency in Panama
This article explains Panama’s residency visa programs, such as the Friendly Nations Visa, Self Economic Solvency Visa, and Qualified Investor Program, which require investments ranging from $200,000 to $750,000 depending on the visa. Each option has specific requirements, appealing to a range of investor goals. Read more
🏖 Guide to Panama Residency Visas
For those considering Panama as a new permanent home, this article details various visa options and emphasizes the need for legal assistance in the application process due to Panama's complex immigration requirements. Read more