Let’s Face The Music And The Absorption Rate.
October 16th, 2007 Categories: How To & Tips, Port Orange Real Estate
PORT ORANGE ABSORPTION RATE 
Selling a home within a reasonable timeframe when the market slows down is not impossible. One of the ways to determine how long it takes for homes on the Port Orange market to be sold is to calculate the absorption rate.
So lets look at the statistics for the month of September from the MLS to determine the absorption rate for the Port Orange market.
There are 907 single family residential listings for sale in Port Orange on the market and of these, 43 units were sold last month.
The absorption rate would then be 990 divided by 43, or 21 months. An absorption rate of 21 indicates a strong buyer’s market . It will take approx. 21 months to sell all homes listed in a community on MLS if no more properties came on the market. To price a property to sell in 10–11 months, you would have to be in the lower 50% of the price range for like kind properties.
So,absorption rates in any local real estate market are usually considered the best indicators of whether that market is a sellers’ market, a buyers’ market, or a neutral market!
Sellers’ Market – Absorption Rates 1-4
Neutral Market – Absorption Rates 5-6
Buyers’ Market – Absorption Rates greater than 7
Follow the Absorption Rate for the Port Orange area here monthly to know when the real estate market favors buyers or sellers. Buyers do not want to pay too much an sellers don’t want to leave money on the table!
Call Team Gagliardi if you would like to know what the absorption rate is in your neighborhood. Call us at 386–316–5968 or drop us an email.
This is one of the clearest explanations I’ve seen of “absorption rate”. Great job, and a real eye-opener for folks in the Port Orange market, I’m sure.
You’re right on target looking at absorption rates. At 21 months it looks like sellers need a skilled Realtor/marketer now more than ever in Port Orange. Our inventory has risen 28% here in Raleigh to 4.9 months. While that’s not too bad, the fact that it’s up from 3.7 months last year has us watching it very closely.