www.batonrougehousingreports.com – Absorption Rates Answer How Long It Takes To Sell Baton Rouge Homes. Absorption Rates Help Answer The Questions: How Long Will It Takes To Sell The Current Inventory Of Available Baton Rouge Housing. How do Absorption Rates apply to Baton Rouge Real Estate Housing? The Absorption Rate topic can be a lengthy, complicated explanation. My goal here is to make the explanation as simple and abbreviated as possible . Simply, the absorption rate is a measure of how long it will take to sell the current inventory of homes in a given market based on supply and demand factors. Why is this important to Appraisers, Real Estate Agents, Home Sellers and even Home Buyers? Because it helps classify if this is a buyer’s market (possibly over supply), seller’s market (possibly under-supplied), if the market is in balance, the current motivation of market participants in a housing market, and how long it could possibly take to sell a home . Actual Calculation Used. Absorption Rate is the total number of available homes (inventory = listings and pending sales) divided by total number of homes sold in previous month. Since this data is limited locally to those with access to GBRMLS (Multiple Listing Service), mainly it’s local Real Estate Agents and Appraisers that will know these numbers. MLS is the private online database where the activity of local Real Estate Agents, licensed by NAR, house their records of home listings and sales. My apology. I did click …
