- There are 55 CONTINGENT properties compared to 57 last month.
- There are 17 UNDER CONTRACT compared to 19 last month.
- 33 properties SOLD compared to 41 last month.
- There are 174 active compared to 178 last month.
ABSORPTION RATE – Is the rate at which homes are selling in.
- 1. Time Frame = 304 days (total days from January 1, 2012 to October 31, 2012)
- 2. Number of Sold Homes = 432 (from January 1, 2012 to October 31, 2012)
- 3. Number of Active Homes = 174 (at the end of October 31, 2012)
CALCULATIONS:
- Rate of Home Sales = .703 – 1 home is sold every .7033 days. This number is found by taking 304/432 (Time Frame/Number of Sold Homes)
- Absorption Rate = 122 days or 4 Months. Found by taking 174 x .703(Number of Active Homes x Rate of Home Sales)
What does this tell us?
If market conditions do not change and if no new listings come on the market it will take 5 months for the current inventory to sell at the current pace of the market. A balanced market’s absorption rate is typically between 5 – 7 months.
