by Terry Brown
"Absorption Rate" is a term used in the Real Estate industry to reflect the amount of property listed for sale vs how many will likely sell in the future - with the math coming from previous sales in a certain market. In other words, "the rate of properties that will be absorbed in the market in future months = absorption rate"...
As of today, Dec 19th, the absorption rate for Residential homes within Salida is 8.42 per month, or 8.42 homes are selling on average every month within Salida. Since today there are 98 residential homes listed on the MLS, that means the inventory of residential homes for sale is 11.6 months - obviously a Buyers market. NOTE: These figures do not include Residential Homes with Acreage or any other locations within our MLS area. However, that number has came down since August when the inventory was at 14.1 months. This is good that the inventory is falling, however, a healthy market is a 6 month supply. More than 6 months is a Buyers market, less than 6 months is a Sellers market.
If you are interviewing a Realtor and they don't know what how many properties are for sale in your market or what the absorption rate is - RUN - you have just met a Realtor that doesn't understand the market and they will unlikely be able to setup a logical marketing program for your property if they don't know what is selling or how many properties you will be competing against... Understand this: Your Property is going to be COMPETING against all of the other properties on the market - and the best value wins (or sells...). Pricing is everything - not low pricing, but CORRECT pricing.
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