Absorption Rate what dose it mean? The Absorption Rate is a number that shows the rate at which the inventory of homes for sale are being sold. If the Absorption Rate is a declining figure that indicates the inventory is decreasing meaning more homes are being sold than are coming onto the market. Thus putting upwards pressure on pricing, home values go up; supply and demand forces kick in.
A rising absorption rate implies that there are more homes coming onto the market than there are buyers willing to buy at the market prices, this pushes prices down.
The absorption rate lets you know how well the market is absorbing the current inventory of listings. The ultimate question the absorption rate, right now in the Palmdale, Lancaster areas the current inventory level growing slowly. However in out current market prices are still on the rise, this is due to the overall number of available listings which is historically low. Our area's “normal” available listings should be close to 2,500, once we hit that level we would expect to see prices level off or take a slight drop in the short term. Currently prices are rising on the low and mid range homes. Another force to be aware of is buyer appetite, buyers can jump into a market at any time thus changing the Absorption Rate quickly.
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Monthend Numbers
| Feb | Jan '10 | Dec '09 | Nov | Oct | Sep ' | Aug ' | |
| Listed | 697 | 691 | 598 | 756 | 659 | 701 | 691 |
| Pending | 623 | 556 | 507 | 667 | 593 | 725 | 564 |
| Sold | 362 | 369 | 517 | 565 | 549 | 564 | 612 |
Dailys* Statistics track the current Real Estate Market in the Antelope Valley, Palmdale & Lancaster.
| New Listings | 38 |
| Back on Market | 9 |
| Price Increases | 2 |
| Price Reductions | 14 |
| Pendings | 30 |
| Solds | 22 |
| Expireds | 7 |
| Inactives | 15 |
| Month to Date and Projected Open Escrows* | |||
| Total Active | 1,354 | ||
| Total Active Core Area | 921 | ||
| Total Active REO's | 211 | 8 | Added |
| Total Short Sale | 306 | 11 | Added |
| Pending MTD/Projected | 149 | 770 | 63.8% |
| Sold MTD | 95 | 491 | |
| Sold Last Month | 362 | 35.6% | |
| Last Year Month | 701 | -30.0% | |
| Active Listing Mix | |||
| REO % of TTL | 22.9% | ||
| Short Sale % of TTL | 33.2% | ||
| REO+SS % of TTL | 56.1% | ||
| Normal % of TTL | 43.9% |
Absorption Rate*
Current Month 1.7 Months
At Last Months Rate 2.4 Months
Historical High Active Listing - 5300+ Mid 2007 - Within the last 3 years our Low Active Listing were under 700
Richard & Janet O'Brian Real Estate Agents in California work with buyers of all types, from first time, to investors, please let us work for you! Call us today. If you are looking for an aggressive Team to find and fight for the best deal call us or visit out website http://www.homesbyjr.com/. Or Keller Williams Realty AV
(Quick Mapping Links for Core Areas)
Palmdale Lancaster Ana Verde Ritter Ranch Quartz Hill Leona Valley Lake Hughes Lake Elizabeth
*The Core Nunbers do not include outlying segments of the Antelope Valley or out-of-area properties. Lancaster, Palmdale, Quartz Hills, Leona Valley, Antelope Acres, Lake Elizabeth, Lake Hughes, Littlerock, Lake Los Angeles, Green Valley and Juniper Hills are included in the core grouping. All figures are Single Family Residential only.
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