Absorption Rate

The absorption rate is the rate at which properties for sale have been or can be sold (marketed) within a specific area. It is determined by dividing the total number of sales for a given market by the time period being analyzed.


If there were 60 sales during the 6-month time period being analyzed, the absorption rate would be 10 sales per month (60 divided by 6). If there are 240 active listings there would be a 24 month supply of homes on the market (240 divided by 10).