In case you are not familiar with what an Absorption Rate is, check out Absorption Rate. How do you like that for redundancy?

Another way of using Absorption Rate is by price range rather than by a geographic area. To do this you must carefully track information from the MLS. I track listings in the Omaha MLS by ranges of prices. For example $100,001 to $110,000, $110,001 to $120,000, and so on. For each price range I track the number of homes that were active at the beginning of each month and how many offers were accepted in that price range by the end of the month. With this information we can see how quickly or slowly homes in that price range are moving.

I show it to my clients like this:

As you can see above, I use the information to calculate the percentage of sellers that accepted an offer and the absorption rate. The percentage of sellers that accepted an offer is figured by dividing the number of accepted offers by the number of homes for sale. The absorption rate is calculated by taking the number of homes for sale divided by the number of accepted offers.

From the above example you can see that in the selected price range the market slowed down considerable between October and November, going from a 6.89 month supply of homes for sale to a 10.45 month supply.

This is another way of using Absorption Rate to give sellers a clearer view of the market.

Troy Trumm

Trumm Team

Omaha Homes Currently Represented

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