How Will Absorption Rates Affect Your Real Estate Transaction in Barrington?

An absorption rate is the inverse of months of supply. For example, if there are 100 homes listed for sale in a certain area, and 10 condos sold over the last month, the absorption rate is 10/100=10%. An absorption rate of 20% or higher means that homes are selling quickly and the market favors sellers.

A good absorption rate for buyers would be 12 months, and sellers will always prefer less time, like one or two months.

We currently have a 5.4% absorption rate in Lake County, so it will take about 5 months to sell all the properties out there. This is about as low a level of inventory as I’ve seen in the past few years. This places us squarely in a seller’s market, so put your home on the market now if you’ve been thinking of doing so.

If you have any questions about this topic, please don’t hesitate to ask. We may even shoot a video in response to your question!