Absorption rates are a calculation of how long it will take for all the homes on the market to be sold, or absorbed, based on how many homes are on the market and how many were purchased in the last 30 days.
I do love numbers, and these are in months, the data used came from the RMLS, (MLS) and is deemed reliable but not guaranteed. It doesn’t come with a warranty either. This covers what is referred to as the 7 county metro area not to be confused with the 13 county metro are which covers the same area, plus six more counties. I ran seperate numbers for St. Paul and Minneapolis because my competitive neighbor and guest author, Erik Hare, likes to compare the two cities. Sorry Erik, we are not winning this month, but we still have the State Capitol building and a bunch of other neat stuff.
- St. Paul 8.8
- Minneapolis 6.6
- Anoka County 10.2
- Carver County 9
- Dakota County 8.1
- Hennepin County 8.5
- Ramsey County 9.3
- Scott County 12.5
- Washington County 8.25
For absorption rates form prior months and related numbers go to Local market conditions & home prices.
Twitter
Flickr
LinkedIn
Facebook
RSS
Posterous
Email
FourSquare
Yelp
SlideShare
Can you explain the numbers a bit better?
Does “8.8″ mean that it’s taking 8.8 months to sell a house right now in Saint Paul, or does that mean that 8.8 houses are sold each month, or does it mean that 8.8 houses are listed per every one sold?
8.8 is the amount of time it would take for all the homes on the market in St. Paul to be sold at the rate they are being bought today. Another way of saying it is if no more homes were put on the market it would take 8.8 months for all the homes we currently have to be sold. Some times we say we have an 8.8 month supply of homes.
Wow… That’s a lot!
What was the rate back during the housing boom?
Alex – it was mostly in the 2 to 4 month range, and lower
Awesome Site, very informative useful information.