It is time again to look at the numbers and calculate the absorption rate. Remember the absorption rate tells us how long it would take to run out of our local house inventory if no more houses were to be listed.
Let’s get started.
Currently, there are 1064 homes for sale. In March 143 homes sold.
To figure absorption rate:
# of listings available 1064
# of listings sold in the last month X 12
143 X 12 = 1716
Divide this # by 52 wks.
1716/ 52 = 33
At this rate 33 units are selling each week.
Divide the # of listings available by that number to get the absorption rate.
Looks like it would take 52 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.