• calendar_month September 23, 2022
• folder Absorption Rate

If you follow me on social, receive my email blasts or have visited my website before you know I like to keep you updated on the real estate market in different areas by giving you a break down and statistical data for that particular market using mainly the absorption rate. 

If you don't follow me on social, receive my emails or have never been on my site before, first stop reading and go follow, tinadagent, subscribe and favorite... now that this is out of the way let me explain what an absorption rate is and what it tells us. 

A market’s absorption rate takes the number of homes active in that area currently and the number of homes sold in the last 30 days and gives us a percentage telling us if that area is in a “Healthy Market” or not or some like to see if as a “Seller’s Market” or “Buyer’s Market”. Any area with a 20% or higher absorption rate is an indication of a “healthy market” or “Seller’s Market” and area with an absorption rate of lower than 20% is a “Buyer’s market”.

So if you look at the market breakdown below you see that Montrose, CA 91020 has a 90% absorption rate!!!! With only 10 active single family homes and 11 sold in the past 30 days we clearly have low inventory and high selling prices. The Median list price of a single family residence has been $1,262,500 while the median sold price is $1,339,000. With such low inventory and demand I truly think we have the next up and coming 90210 on our hands!!!!