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Wow! Break out the cotton swabs! 

Absorption rates are a  calculation of how long it will take for all the homes on the market to be sold, or absorbed, at the current rate of sales.

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.  

Anoka County 5.2 Months
Carver County 6.4 Months
Dakota County  5.4 Months
Hennepin County 4.6 Months
Ramsey County  4.7  Months
Scott County  5.0  Months
Washington County 6.4 Months

I usually use paper towels to absorb the excess, last month I used toilet paper. There is not nearly as much inventory to absorb as there used to be.  Last month I predicted that I would be able to use q-tips this month. I think the cotton swabs are over kill and if this keeps up I am not sure what to use for next month. Maybe the paper towels they use in public restrooms?  A year or so ago I used a picture of a wet/dry vac in my post, things have changed since then.

An absorption rate of six months means that the market is balanced and does not favor buyers or sellers. Under six months is a sellers market and over six months is a buyers market.  We have been in a buyers market for a couple of years.  The market looks balanced but I am not sure how balanced it is. The lowest priced homes are selling at a much faster pace than the average priced home.  Part of the reason home buying activity has picked up is because it is spring.  The buyers come out when it gets warm.

This year buyers have a tax incentive and the interest rates are oh so low, so instead of just coming out of hibernation like they did last spring they are actually buying.  I predict that the absorption rates will go up in a month or two but it doesn't look like I will need the wet dry vac.  We may reach the disposable diaper stage again in a few months. Watch for the next wave of foreclosures. We should keep the shop vac handy just in case.

Bargain hunters need to understand that they are not alone. In the past few weeks I have had a couple of buyers drag their feet and let someone else scoop up the barigain. yes we are seeing multiple offers but I am only seeing them on the lowest priced properties.

For sellers I am going to suggest that this might be the window of opportunity you have been waiting for. That doesn't mean that you have more equity. Home prices have gone down.  Pretend it is 2002, your home may be worth what it was worth then.