Absorption Rate and Why it Matters

In real estate, "absorption rate" is the rate at which homes are sold during a given time period, calculated by dividing the total number of homes on the market by the average number of sales per month. The absorption rate is an estimate of how many months it will take to absorb the supply of homes in a specific market.  The market could be your state, city, or even neighborhood.  Especially in a community like Windward, neighborhood absorption rates vary widely due to differing price points, schools, amenities, etc.  A detailed absorption rate analysis helps you plan the marketing of your home to meet your family's timing needs.