Absorption Rate - What Does It Mean?
Many times when someone is looking to either buy or sell a home they will ask how long has that home been on the market and I will give them the answer. But more important, in my opinion, is what the activity like in an area or a price range. This chart gives an overview of what is happening in both Dauphin and Cumberland counties in the greater Harrisburg PA real estate market.
The absorption rate is calculated by dividing the number of homes sold in a specific period into the number of homes for sale. The term 'balanced market' has been determined to mean that you have a housing supply of six months in a price range. And if there is less than a six month supply it becomes a 'sellers’ market' and over six months is a 'buyers’ market.'
This is a good rule of thumb to look into whether you a buyers or seller but remember other items such as taxes and insurance can impact the value of a home and what a buyer is willing to pay for a home. The absorption rate can influence a buying decision so do not hesitate to ask because although it is a snapshot it can in some instances be an indication of things to come in the future.
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When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.
When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.
As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.
If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.
