The Market Absorption Rate is a theory that helps to illustrate where the market is - are we in a buyers, or sellers market?
As of today January 6th, there are 176 Residential Homes for sale in Derry, NH.
For the month of November 13 Residential Homes sold.
So, taking the 1 month sales of 13 units for November, and dividing it into the total inventory of 176 we get 13.54.
That number of 13.54 represents the theoretical number of months of inventory that is currently on the market in Derry. A true Sellers Market would be indicated by less than 6 months of inventory. 13.54 indicates that a buyers market exists in Derry. Compared to the 10.53 measure in November the market is not improving in Derry even though inventory is down.
Different conditions may exist at different price points.