What is Absorption Rate?

“There are only a certain number of houses that will
sell in any market in any given period of time.
Let’s see if your house will be one of them.”

If 12 homes sold in the last 12 months in a given market
that means that the market will absorb 1 house per month
on average. If there are 10 homes currently on the market
there is a 10 month supply.  A 6 month supply is a balanced
market, less is a sellers market and more is a buyers market.