Absorption Rate Statistics
What is the Absorption Rate?
Simply stated, the Absorption Rate is the number of months supply there is in the market based on the current number of listings and the number of sold listings in the past 12 months. Experts state that a 6 months supply means the market is in balance. A number less than a 6 months supply indicates that it is a sellers market whereas a number greater than a 6 months supply indicates it is a buyers market.
Currently, in our market most areas and price ranges are greater than 6 months meaning that for a larger percentage of our listed properties, it is a buyers market. There are some areas and price ranges that have a less than 6 months supply indicating those specific markets are more of a sellers market.
The more the market is a sellers market, the more appreciation will occur. With a buyers market, it will be just the opposite and prices will tend to depreciate. We have been very fortunate to not see the large depreciation that has occurred in some markets, ie. California, Florida, Las Vegas, etc.
On my website, I will only be publishing the Tippecanoe County Absorption Rate statistics. If you would like a more detailed report by school districts, please contact me and I will be happy to send them to you.
Absorption Rates for 12 month period edning February 28, 2010.
Absorption Rates for 12 month period ending January 31, 2010.
