cotton swabs – absorbent enough
Absorption rates indicate that housing is selling. Sometimes we forget that is isn’t 2005 and it never will be again but that homes are bought and sold every day. I usually compute an absorption rate each month and post it here on the blog but this month we are going to use the average absorption rate for the Twin Cities Metro area for October from the Minneapolis Area Association of Realtors.
6.2 Months
The current absorption rate is 6.2 months which indicates a healthy market that is almost perfectly balanced between buyers and sellers. It is still a buyers market but with the low inventory of homes on the market homes are selling faster.
The absorption rate is a calculation of how quickly homes on the market are being absorbed [purchased]. Absorption rates have remained fairly stable for several months now. The local housing market is stable and prices should remain stable as well.
For more local real estate numbers please see Local Market Conditions & Home Prices.
Teresa, good article. We have about 5.5 months of inventory here in the Austin, Tx. area. I have found that our market here is in balance at closer to 4 months of inventory. Good that things are reasonably healthy there.
I am not sure if I understand the new normal well enough to declare healthy market but it is a stable market now.