Absorption Rate is one of, if not the best, indicator for the Real Estate Market. The Absorption Rate is just what it says. It’s the rate at which a home is absorbed into the Market.
These are the Absorption Rates for Single Family Homes (no condos) for the Vero Beach Barrier Island, Vero Beach Mainland and Sabastian, FL using 12 months of data. By using the Absorption Rate and the Current number of listings you can also find the number of months of supply in any given market.
- Barrier Island – Absorption rate is 33. That’s 33 single family homes being absorbed into the market every month for the last year. With the current number of listings the supply of inventory is 10.55 months. That means it will take 10.55 months to sell every listing on the island if no other listings enter the market (which won’t happen)
- Mainland – Absorption Rate is 162.4 with 4.8 months of supply
- Sebastian – Absorption Rate is 68 with 4 months of Supply
Traditionally over 6 months of supply is a buyers market and under 6 months is a sellers market. So on a whole the Island is a buyers market, Vero Mainland and Sebastian are a sellers markets.
These rates are for all sales in the area, but could be calculated by neighborhood or price range to get a very specific Absorption Rate. Every Realtor should be showing these rates to sellers and buyers. If you are working with a Realtor I suggest you ask for this information. If they don’t know how to do it call me.