What is Absorption Rate?
Absorption rate is simply a calculation about the supply and demand of the real estate market. It is defined as the rate at which available homes are sold, in any given real estate market, during any given time period.
Absorption Rate Analysis for the Petoskey Area
|12 months||6 months||3 months|
|# of closed home sales||312||132||89|
|Average # of homes sold per month||26||22||30|
|# of currently active homes||366||366||366|
|Months supply of houses||14||17||12|
What the Numbers Mean
During the last 3 months, we can see that the average number of homes sold per month has increased to approximately 30 per month. This shows that the trend in the Petoskey real estate market is toward increasing home sales.
There is currently a 12 month supply of houses available in Petoskey. This shows the trend is towards decreasing home supply.
There are only a certain number of houses that will sell in any given market, at any period of time. Will your house be one of them? Click here to contact me for your personalized analysis.
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