The numbers for 2011 December Sales Report are out!
Although we typically think of December as a slow month for buying or selling a home, this past December was a very busy month! More homes were sold than in November. In the month of November, there were 1214 homes on the market and 123 homes sold as compared to December’s numbers of 1045 homes available and 126 homes sold.
These numbers put our current absorption rate at 36 weeks.
Knowing the absorption rate helps you to see market trends.
The Definition of Absorption Rate:
Number of weeks it takes to sell the current inventory at the present rate of sales.
To figure absorption rate :
# listings available 1045
# listing sold in the last month X 12 126 X 12 = 1512
Divide this # by 52 wks 1512/52wks = 29
At this rate 29 units are selling each week
Divide that number by the # of listing available
to get the absorption rate 1045/29 = 36wks