Absorption Rate

Absorption Rate

Definition: Number of weeks it takes to sell the current inventory of  Denver homes at the present rate of sales.

Absorption rate is simply the rate at which real estate is selling. The rate is used to find out trends in Real Estate. The be able to track these trends Real Estate Professionals follow these (and other) numbers usually on a monthly basis.
The absorption rate is more of an estimate, not exact science and it can be calculated for any particular price point, any subdivision or neighborhood or for number of other criteria.

To figure out what this rate is you need to know the following numbers:
1. Number of Homes on the Market (ACTIVE)
2. Number of Homes SOLD last month. (sometimes you see pending or under contract homes either on the sold category or on the Active category).

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