Absorption Report

85138, House

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

Houses 19% 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
251k-275k 2 1 0.3 0
276k-300k 11 48 7 0.7 1.4
301k-325k 43 138 19 0.5 1.9
326k-350k 81 177 34 0.4 2.7
351k-375k 69 123 19 0.3 3.4
376k-400k 92 117 25 0.2 4.7
401k-425k 62 56 8 0.2 6.6
426k-450k 48 39 10 0.1 7.4
451k-475k 23 25 7 0.2 5.5
476k-500k 21 29 5 0.2 4.3
501k-550k 21 23 1 0.2 5.5
551k-600k 6 10 3 0.3 3.6
601k-650k 9 8 0.1 6.8
651k-700k 3 3 0.2 6
701k-750k 1 1 0.2 6
751k-800k 1 0