4. Market Absorption Rates Market Absorption is an industry-wide standard used to measure the current real estate market. Simply put, it is the amount of time, in months, that it would take to sell the existing inventory at the current pace of sales, assuming no other homes come on the market.
12. 1 2 3 4 5 6 7 8 9 10 11 12 Normal Market Absorption in Months Market Scale for Supply & Demand High Supply/Low Demand Low Supply/High Demand Normal Weichert has been studying market conditions for more than 3 decades and has found a direct correlation between market absorption and property values. As absorption rates increase beyond a normal market level of 5-6 months, property values depreciate annually.
