Real Estate Trends Big Bear December 2016
What is Absorption Rate?
The number of weeks it takes to sell current inventory at present rate of sales. Absorption rate is used as a way to track the “trend” of the market.
The figures used here are per Big Bear Multiple Listing Service.
- Number of listings (residential) all that are listed as Active, Contingent, Pending (in escrow) & Back-Up status (a contract on the property with a contingency) 553
- The number of sold properties for the previous month. 109
Number that sold last month, 109 X 12 (months in a year) =1308 divided by 52 (weeks in a year) =25.
then divide by number of listings 553 to arrive at Absorption Rate of 22 Weeks
This Month’s Absorption Rate is: 22 Weeks.