Absorption Rate is a way to measure current inventory levels. It is based on the number of current listings and the number of contract sales in the last 30 days. Market absorption is an indicator of who is favored in the market: buyers or sellers, and it directly correlates to appreciation or more recently, depreciation. As of last Friday, absorbtion rates in my key market areas were as follows:
|
Total Listings |
Under Contract last 30 days |
Market Absorption |
|
| Basking Ridge |
238 |
34 |
7 months |
| Bedminster Twp |
98 |
24 |
4 months |
| Bernardsville Boro |
101 |
9 |
11 months |
| Bridgewater |
301 |
51 |
6 months |
| Long Hill Twp |
64 |
4 |
16 months |
| Harding Twp |
74 |
2 |
37 months |
| Warren Twp |
148 |
8 |
19 months |
|
|
|
|
As I have said many times before, monitoring absorbtion rate on a daily or weekly basis is like getting on the scale too often when dieting; we have to look at the big picture – or the trends. Rates will vary based on typical seasonal cycles. They also vary greatly by price point or community.
This information is something that I monitor pretty closely for each of my seller and buyer clients – if I have your home listed, you can expect this information on a regualar basis and you can be confident that my recommendations and marketing are based a thorough understanding of what is happening in your market segment.
I am happy to provide information on the impact of absorbtion rate on the value of your home. If you are thinking about buying or selling a home, contact me today for all of your Basking Ridge real estate needs or visit my website to search homes for sale in and around Basking Ridge, NJ.
