Absorption Report


Absorption Report

The absorption rate is essentially the total number of months that it would take to sell all of the current listings in a particular market. These ratings are in a constant state of fluctuation, based on supply and demand, and usually involve all homes sold within the previous six-month period. A lower absorption rate means that the property will likely take a bit longer to sell, and conversely, a higher number indicates that the property is likely to sell much faster. Both buyers and sellers can use this data to help predict sales activity and home prices for the property in question. For example, if a homeowner lives in a market with an absorption rate of 5-months and is also anxious to sell due to a job transfer, then it might be in his or her best interest to be more aggressive in the listing price.

Seller's
Market
Balanced
Market
Buyer's
Market
< 5 months Inventory 5 months Inventory > 5 months Inventory

Townhouses 25% of available homes are currently under contract

List Price Available # of Homes Available Sold Last 6 Months Sold in Last 6 Months Under Contract
Last 30 days
Sold in Last 6 Months
Absorption Rate Absorption Rate Months of Inventory Months of Inventory
101k-125k 4 0.7 0
126k-150k 1 1 0.2 6
151k-175k 1 2 0.3 3
176k-200k 5 7 0.2 4.3
201k-225k 5 23 3 0.8 1.3
226k-250k 18 28 4 0.3 3.9
251k-275k 15 33 3 0.4 2.7
276k-300k 23 44 10 0.3 3.1
301k-325k 29 46 7 0.3 3.8
326k-350k 24 67 11 0.5 2.1
351k-375k 27 44 6 0.3 3.7
376k-400k 41 76 11 0.3 3.2
401k-425k 49 74 9 0.3 4
426k-450k 48 54 10 0.2 5.3
451k-475k 27 38 3 0.2 4.3
476k-500k 26 45 9 0.3 3.5
501k-550k 39 32 4 0.1 7.3
551k-600k 26 21 1 0.1 7.4
601k-650k 11 9 2 0.1 7.3
651k-700k 9 15 3 0.3 3.6
701k-750k 7 11 2 0.3 3.8
751k-800k 3 5 0.3 3.6
801k-850k 2 5 0.4 2.4
851k-900k 4 2 0.1 12
901k-950k 3 2 0.1 9
951k-1m 1 5 0.8 1.2
1m-1.1m 1 1 0.2 6
1.2m-1.3m 1 1 0.2 6
1.3m-1.4m 1 0.2 0