The Market Absorption Rate is a theoretical means of measuring where the market is - are we in a buyers, or sellers market?
As of today January 6th, there are 94 Residential Homes for sale in Londonderry, NH.
For the month of December 8 Residential Homes sold in Londonderry, NH.
So, taking the 1 month sales figure of 8 homes for Deceember, and dividing it into the total inventory of 94 we get 11.75.
That number 11.75 represents the theoretical number of months of inventory that is currently on the market in Londonderry. A true Sellers Market would be indicated by less than 6 months of inventory. 11.75 means that in the month of December, it was a buyers market but not as much as in November.
Different conditions may exist at different price points.
Sept 2007 - 7.83
Oct 2007 - 8.13
Nov 2007 - 16
Dec 2007 - 11.75