Absorption Report

85212, 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 23% 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
326k-350k 1 0.2 0
376k-400k 3 0.5 0
401k-425k 1 7 1.2 0.9
426k-450k 14 19 3 0.2 4.4
451k-475k 19 33 7 0.3 3.5
476k-500k 22 39 10 0.3 3.4
501k-550k 40 86 17 0.4 2.8
551k-600k 49 100 21 0.3 2.9
601k-650k 36 63 15 0.3 3.4
651k-700k 22 35 2 0.3 3.8
701k-750k 17 21 7 0.2 4.9
751k-800k 23 30 8 0.2 4.6
801k-850k 12 11 3 0.2 6.5
851k-900k 8 11 2 0.2 4.4
901k-950k 4 5 1 0.2 4.8
951k-1m 3 12 5 0.7 1.5
1m-1.1m 1 0
1.1m-1.2m 2 6 0.5 2
1.2m-1.3m 5 2 1 0.1 15
1.3m-1.4m 1 0.2 0
1.4m-1.5m 1 1 0.2 6
2m-2.25m 1 1 0.2 0