• There are 11 CONTINGENT properties compared to 20 last month.
• There are 7 UNDER CONTRACT compared to 3 last month.
• 7 properties SOLD compared to 6 last month.
• There are 53 active compared to 51 last month.

ABSORPTION RATE – Is the rate at which homes are selling in.

• 1. Time Frame = 304 days (total days from January 1, 2012 to October 31, 2012)
• 2. Number of Sold Homes = 64 (from January 1, 2012 to October 31, 2012)
• 3. Number of Active Homes = 53 (at the end of October 31, 2012)

CALCULATIONS:

• Rate of Home Sales = 4.75 – 1 home is sold every 4.75 days.  This number is found by taking 304/64 (Time Frame/Number of Sold Homes)

• Absorption Rate = 251 days or 8 Months. Found by taking 53 x 4.75 (Number of Active Homes x Rate of Home Sales)

What does this tell us?

If market conditions do not change and if no new listings come on the market it will take 8 months for the current inventory to sell at the current pace of the market.  A balanced market’s absorption rate is typically between 5 – 7 months.