Good Morning, Osnat Levy with your Monday Market Report….
Today I would like to talk about Absorption rate:
This is the rate at which available homes are selling, in a specific real estate market, during a specific time period. The absorption rate is calculated in months.
(In other words: How many month it will take to sell all inventory that currently on market assuming market condition stays same as in previous months)
In general it is considered to be a:
- Buyer’s Market: When over 7 months of supply
- Balanced/Transitional Market: When 5 to 7 months of supply
- Seller’s Market: When less than 5 months of supply.
We are still very short on condos. Single family homes prices are so high that we see an increase of inventory. Low end still sell very fast.
Osnat Levy for the Monday Market Report