Absorption Rate – DC is a Sellers’ Market
Instead of relying on general observations about the state of our market, we use a calculation called Absorption Rate to obtain hard data to determine if we are in a Sellers’ market or a Buyers’ market. 6 Month Supply = Balanced Market Less than 6 Month Supply = Sellers’ Market More than 6 Month Supply = Buyers’ Market Here is our formula: Current Active Listings/Average Number of Sales Per Month over a given time. We did an analysis below for three areas to show that we are clearly in a Sellers’… Read More