Jan 10, 2022 8:21:32 AM
Absorption rates in real estate refer to the percentage of available real properties sold within a certain time frame. We can use absorption rates to evaluate the health of the market and to estimate the length of time properties will sit in inventory.
The higher the absorption rate, the faster homes in the market will sell. An absorption rate above 20% is a seller’s market, and one below 15% is a buyer’s market.