Greenville SC Absorption Rate

I have decided to add a new chart to my quarterly analysis of the real estate market in Greenville, South Carolina.  This graph will depict the absorption rate for single-family homes, condos, and townhomes in the Greater Greenville area.  

What is the absorption rate?  Well, the absorption rate has been in the national news quite frequently in recent months.  The absorption rate should not be confused with how long it would take to sell a home, but the idea behind the absorption rate is to see how long it would take to sell every property currently on the market based on the number of comparable sales within a certain time period.  The absorption rate is also sometimes referred to as the current supply of homes in Greenville SC, or supply of existing homes.   

The most recent report shows a national average of approximately 11 months, while Greater Greenville currently has an absorption rate of 6.44 months based on data taken from the Greater Greenville, SC Multiple Listing Service from April 2008 through August 2008.  The absorption rate for Greater Greenville is actually consistent with a neutral market, rather than a buyer or seller's market.  I have broken this data down by price range, in order to show the variance of absorption rate across different levels of home value.     

The absorption rate is also a method in which you determine the type of market: 

• Sellers' Market - Absorption Rates 1-4 months
• Neutral Market - Absorption Rates 5-6 months
• Buyers' Market - Absorption Rates greater than 7 months

So, as of August 8th, 2008, here is the graph detailing the absorption rate in Greenville, South Carolina

View this and more information on my website: GreenvilleMOVES.com!