1. Sample Market Absorption Rate Current active listings Reported sales in last 30 days = Absorption Rate in months. Also known as months supply. Anytown, NJ 5-6 Months Market Absorption Rate indicates a normal market.
2. Market Absorption Scale (Absorption Rate in Months) 5-6 months absorption rate indicates a normal market.
3. Market Scale for Supply & Demand High Supply/Low Demand Low Supply/High Demand Normal Weichert has been studying market conditions for more than 3 decades and has found a direct correlation between market absorption and property values. As absorption rates increase beyond a normal market level of 5-6 months, property values depreciate annually. Market Absorption in Months 1 2 3 4 5 6 7 8 9 10 11 12 Normal
4. 4/6/10 Towns Active Listings Pending in Last 30 Days Absorption Rate in Months New Listings in 30 Days Net Gain (Loss) to Market Listings Reduced in 30 Days % of Invent. Reduced Expired Listings W/drawn Listings Closed Listings Lawrence: All Styles 231 37 6.2 62 25 68 29 12 8 26 Lawrence: Condo/ THouses 68 14 4.9 19 5 22 32 3 2 12 Lawrence: 55+ 22 2 11 2 0 - - 0 3 2 Lawrence: Single Family 144 20 7.2 41 21 39 27 7 5 12
Editor's Notes
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
