The absorption rate is a fancy way to look at how fast the “market” is literally buying homes. Realtors, banks, housing junkies and relocation companies usually analyze “absorption rates” in order to determine how much inventory is currently available within the area.
The formula is fairly simple:
The National Association of Realtors (NAR) and state and local real estate associations also publish absorption rates for public consumption. By NAR standards our market is in total love with sellers at this time.
Buyers are struggling to find a home they can afford and bidding wars. Sellers have the advantage (in most areas) but need to stay on top of the shifting marketplace.
For detailed numbers about your neighborhood.