Absorption Rate is a method we use to determine the supply and demand for housing.
We determine the number of listings on the market within particular price brackets. We then view how many houses have sold or pended in the past three months and calculate the average per month. The number of active listings is then divided by the average sales per month to identify how many months inventory is available.
Sellers Market - Less than 6 Months Inventory
Buyers Market - More than 6 Months Inventory
Balanced Market - 6 Months Inventory
All information included in our Absorption Rate Graphs is generated from Realcomp Inc, an area Multiple Listing Service serving Southeastern Michigan. Note that no private sales would be included in this report. All information is deemed accurate but not guaranteed.