Tuesday, June 9, 2015

What does 'Absorption Rate" mean?

What exactly is an absorption rate?

In simple terms, it is the measure of inventory. 

To figure out the absorption rate,  you divide the inventory by the demand. This leaves you with how long it would take for all the listing inventory on the market to be sold if no new homes were to be listed for sale.  

The Ocala/Marion county statistics for April 2015 show the absorption rate for single family homes is 6.3 months. This is a 12.8 % decrease from April 2014, when the absorption rate was at 7.3 months.

 
A balanced market’s absorption rate generally falls in the 5 – 7 month range. If you have any questions about your home or would like market statistics for your specific Ocala Neighborhoods, give us a call or send us an email.