Absorption rates are a calculation of how long it will take for all the homes o
n 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. The absorption rates are for 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 also ran seperate numbers for St. Paul and for Minneapolis.
- St. Paul 6.8 Months
- Minneapolis 6.1 Months
- Anoka County – 8.0 Months
- Carver County – 7.5 Months
- Dakota County - 7.7 Months
- Hennepin County – 7.4 Months
- Ramsey County - 7.1 Months
- Scott County – 9.0 Months
- Washington County – 7.6 Months
Absorption rates went down across the board for the second month in a row. Down means the numbers got smaller which means the homes listed are being purchased or absorbed at a faster rate. In the spring both the number of houses put on the market goes up and the number of homes purchased each month rises. Early next month there will be number available that will show if the inventory of homes on the market is declining.
Absorption rates from March 2008
Local Market Conditions & home prices
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Teresa – since you love those numbers, could you run them for the nation as a whole? Just kidding…thanks for figures. Spring is the buying season and it’s always good to see the absorption rate in line with the buying cycle…now if we can manage to hear that good news on the national news wire, just maybe those prospective buyers will get off the fence and help turn this housing market around. It really is a great time to buy!
Teresa,
Wow! That’s a pretty solid drop from last month. Do that once more and St. Paul may start to look like one of the more balanced markets.
Seems that investors are once again active in lots of U.S. communities. I hear that foreigners are now purchasing real estate there at a pretty good pace. Are you seeing these things in your market? Perhaps the bottom has been reached?
Jake.
lucky for my readers I don’t have access to all the number in the country.
Norm – Hard to say, it is spring. better than last spring but still not great.
T – I had to laugh at the photo and your title about absoprtion. With an 18 month old, I just upgraded him from #4 cruisers to #5s so the photo hits home. Maybe my sons diaper need is directly correlated to the Twin Cities home market.