So who doesn’t love to look at our numbers to calculate the absorption rate?
Starting with December, we had an absorption rate of 36 weeks. That means that last December if no more homes were listed, it would have taken 36 weeks till we ran out of houses to sell. That jumped to 58 weeks in January.
So let’s find the absorption rate for month of February.
Currently, there are 1079 homes for sale. In February, 113 homes sold.
To figure absorption rate:
# of listings available 1079
# of listings sold in the last month X 12
113 X 12 = 1356
Divide this # by 52 wks.
1356/ 52 = 26.07
At this rate 26.07 units are selling each week.
Divide the # of listings available by that number to get the absorption rate.
Looks like it would take 41.38 weeks to run out of houses.
Many analysts will tell you that you can get a better idea of the market for your home by calculating the absorption rate in your price range rather than the overall market.
You can use the information in the chart below or give me a call. I will gladly help you figure your absorption rate.