Absorption Rate Analysis & Resale Agents
For those who may be unfamiliar with the concept of Absorption Rate Analysis, here’s a review.
It is a tool that looks at how many homes are absorbed by the market on a monthly basis and how that affects a house listing in terms of how long it may take to sell the home relative to the current inventory. In short, it assists in gauging the health of your local real estate market. Additionally, it provides you and your client with insight into whether the market can be termed a “balanced,” “buyer’s,” or “seller’s” market.
A recent article in the Realty Times by columnist Jerry Rossi provides a detailed example of how to calculate the Absorption Rate. Click here to read.