Absorption Rate and Inventory LOWS

Absorption Rate and Inventory LOWS

0 0 3 years ago
59 Plays 22 Downloads
There is an interesting metric used in the real estate business to evaluate the nature and health of the market. It is the 'absorption rate,' or the rate at which listings in inventory are absorbed by the pool of active buyers.
It is calculated by first discovering how fast homes sold during the recent past - say, six months - and dividing that into current inventory. If we were averaging 50 homes sold per month over the previous six months and there are 300 homes in inventory ... See More

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