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Absorption Rate? What’s That?

It's true... I post a LOT of Edmond real estate statistics. I'm a total stats junkie. Althought stats don't show everything about every situation, they're the most real way to evaluate many situations, and when it comes to the real estate market, statistics teach us a lot.

So, the whole key to statistics is knowing how to read what you're looking at. In my opinion, one of the most useful tools for evaluating the health of a market, whether it be an entire metropolitan area, a neighborhood, or a size/price range of homes, is absorption rate. You'll see that term all over my blog posts, so here's what it means:

Basically, absorption rate is the amount of time it will take to sell all of the homes on the market, based on current sales trends...

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Posted by Ryan Hukill - Edmond Realtor® on 03/07/2008 08:37 AM

Comments (3)

absorption rate, statistics

Originally posted at: Edmond/NW OKC Real Estate: Absorption Rate? What’s That?

3 Comments on Absorption Rate? What’s That?

MAR

2008

From one statistical junkie to another, well said. Folks who don't study the stats are just throwing wet globs on the wall to see what sticks.

Ryan, stats are important especially in commercial real estate. This is one of the first questions asked from a savvy investor.

Good Post and article!

Lenn - you're exactly right. I find that those folks are simply following the tide of public sentiment most times and since they don't research to verify, they're generally way off base. Thanks for commenting.

Michael - Thanks for the compliment. These are the types of things everyone should be evaluating, whether commercial or residential. Sadly most times, it's not.

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