Ever hear the term Absorption Rate? What is Asheville’s current Absorption Rate?
This term is used to describe the current inventory of houses on the market. It refers to the current supply in terms of months it would take to sell the existing homes based upon the previous month’s performance.
For example, look back at our chart in the previous post.
In the month of March 356 home sales closed in Western North Carolina. There were 6,247 homes on the market at the end of the month. The Absorption Rate assumes that if 356 homes are sold per month and there is an inventory of 6,247 homes then there is a 17.5 month supply currently on the market (6,247 / 356). In other words, it will take 17.5 months to “ABSORB” the current inventory at last month’s rate.
