Do you know what an Absorbtion Rate is?
Well, I do now, thanks to Megan McGonigal over at Cecil County Connection!
Absorption Rate is the rate at which properties are able to be leased or sold in a given area. Here is what Megan details on her blog about Harford County:
There are several ways to determine the absorption rate. For example you can break it down by how many weeks or months will it take to sell your home in the current market. I’ll go with month for this example. I am using information provided through the Harford County mls for the month of February. During that time period there were 1937 homes on the market in Harford County, MD + 255 properties under contract. You add those two figures together and get 2192. There were 165 Harford County home sales that month. Now take 2192 and divide it by 165. This is the rate of absorption in months. That means that for Harford County, MD the rate of absorption is 13.28 months. That means that in the current market conditions it will a little over 13 months to sell all of the current inventory.
Will BRAC help bring the rate back down to normal? Or will the KKK and 3-headed deer continue to be a problem?
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