The Condo market in Martin County, Florida is maintaining excellent momentum this season with regards to volume. Sales numbers remain up and inventory and absorption rates are both down. Prices, however continue to decline. If we haven't hit the bottom, we are very close.
The Definition of Absorption Rate:
Number of weeks it takes to sell the current inventory at the present rate of sales. Knowing your area's Absorption Rate, helps to track trends. Understanding the market and where it is headed is part of our job as real estate professionals. Absorption rate is NOT an exact science. Figuring it is based on the premise that one will be looking for a TREND. It is advised to consistently do the numbers each month, to be able to track a trend.