The Absorption rate is roughly how long it will take the current homes on the market to sell. It’s an estimate, based on the current number of lisings and the average number of sales per month. Because those two factors fluctuate from month to month, absorption rate is a rough estimate.
As of July 31, the absorption rate in Frederick County was down to 6-7 months, from a high of 16 months 2 years ago. That is a great sign for the market.
An absorption rate of about six months indicates a balanced real estate market. Balanced means a market that does not favor the buyer or the seller. An absorption rate of less than six months indicates a seller’s market. An absorption rate of more than 6 months indicates a buyer’s market. We had a seller’s market for several years, in the last few years we have seen a buyer’s market, although not a very active one, as prices were falling. It is coming closer to a more balanced market today, with prices leveling off, inventory low, but demand is iffy.
Search the MLS like a Realtor
The Highland Group
Turning Point Real Estate
301-831-9947
isell4u2@msn.com
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