Absorption Rates and Inventory Supply of homes


What can an Absorption rate tell you when selling your home?


Absorption rates and inventory supply will paint you a picture of how long it may take to sell your home. Therefore these rates are really important for you to know when you’re selling your home in CoralAbsorption Rates in Southeast Florida Springs, Boca Raton, Boynton Beach, Delray Beach, Deerfield Beach, Coconut Creek, Margate, Parkland, Sunrise, Tamarac or anywhere here in southeast Florida.

Absorption rates detail the supply of homes and inventory levels; how many homes are available for sale to meet the demand of Buyers. It illustrates how many months it would take to sell the current inventory of homes for sale should no other homes hit the market for sale or how will these homes be absorbed (sold) into the market based upon prior month home sales.

This absorption will determine whether we’re in a Seller’s, Buyer’s or Balanced/Stable market.  Typical absorption rates of 20% and higher reflect a Seller’s Market and 15% and under reflect a Buyer’s market, while a Balanced market hovers in between the two.

Typically, when there is less than 6 months of inventory supply we’re in a Seller’s Market, 6 months of inventory supply we’re in a Balanced/Stable market and over 6 months inventory supply of homes reflects a Buyer’s market.

Do you know what you’re absorption rate or inventory supply is for your southeast Florida city or better even still is to know the rate for your neighborhood. These rates can be determined by neighborhood as we have some neighborhoods that are languishing while others are “hot” neighborhoods. (Call me, text me or email me if you want to know the absorption rate for your neighborhood) 


There are basic guidelines when determining Absorption Rates in an area and they can range from a Seller’s Market, Stable Market to a Buyer’s Market. Obviously depending on your position in the home process, you’re going to be routing for one market or another:


Seller’s Market: is when there is a high demand for homes in your area with less than 6 months of available homes for sale (inventory). Home Sellers will love this market.

Stable Market: is when we’re smack dab in the middle with the market being in between  a high and low demand with  the market equal to 6 months of available homes for sale (inventory)

Buyer’s Market: is when there is a lower demand for homes in the area with an excess supply with more than 6 months of available homes for sale (inventory). Home Buyers will love this market.

Be sure to find out about these rates when selling your home or buying your home here in Coral Springs, Boca Raton and all other southeast Florida cities.  Customers always find the Absorption rates to be very telling and not all REALTORS® talk about them.

Remember to give me a call or email me if you want to talk Absorption Rates. Happy Selling. Happy Buying.


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