Absorption Rates

Absorption information about a town provides a good indication about the health of the real estate market in that town.
In Massachusetts, services are provided to residents on a town basis, rather than county-based which exists in many other states in the country. For this reason, the health of an individual town's real estate market can be very different from one town to another.

What are Absorption Rates?

Absorption rates can be described as the number of months needed to sell the available inventory at the rate of sales experienced in the previous 12 months IF no additional properties were listing during that time.
So, given the 'normal' rate of sales that have occurred over the previous 12 months, and given the number of homes on the market currently, how many months it would take to sell everything that is currently available is known as the absorption rate. We generally say that anything below 7 months supply is 'healthy'. The absorption rate can be a general rate for a town, for instance, for all single family homes in that town, or it can be more specific and related to price ranges.
For more information see the following newsletters:
MLS data is provided by MLSPIN. While MLS data is believed to be accurate, it cannot be guaranteed. MLS data is constantly being updated, making any analysis a snapshot at a particular time. All raw data remains the intellectual property of MLSPIN.