Henderson | Las Vegas | North Las Vegas Real Estate Market Reports: What is Absorption Rate and How is a Buyer/Seller/Stable Market Defined?
By Renée Donohue~Home Photography, Western Michigan Real Estate Photographer
(Savvy Home Pix)
What is Absorption Rate? Absorption rate is basically a report of inventory amounts & trends. It is important for placing offers, pricing new listings and in general understanding where the market is heading. It shows trends in a "monthly format" which gauges how many months it will take for the market to currently "absorb" all of the invententory. How is a Buyers Market, Seller's Market or Stable Market Defined with Absorption Rate? It's actually quite simple: Less than 6 Months of Inventory = Seller's Market Around 6 Months of Inventory = Stable Market More than 6 Months of Inventory = Buyer's Market Here is What a Sample Absorption Report Looks Like: The above report is for the entire Las Vegas Valley (includes Henderson, North Las Vegas and Various Other Enterprises and Townships ...