What is the Absorption Rate in Florence?
The Rate of Absorption measures the inverse of Months of Inventory and represents how much of the current active listings (as a percentage) are being absorbed (sold or pended) each month. Absorption Rate is presented as a percentage (%) of the current inventory.
As a rule of thumb, an absorption rate of less than 16.67% indicates a strong buyer market while an absorption rate level greater than 33.33% indicates a seller's market.
The chart below represents Florence, within city limits, Absorption Rate based on Close Sales from August 2017 until the end of the 3rd Quarter, October 2018.
The Absorption Rate from August 2017 to October 2017 (3rd Quarter 2017) was 26.7%. The Absorption Rate for the same quarter of this year was 64.8%, that is an increase of 142.6%!
2018 was a strong sellers market and 2019 will be even stronger! If you have been thinking of selling, but waiting for your perfect opportunity, give me a call to get started at the first of the year before the market floods with inventory.
Laura Wilson, Broker
Windermere Real Estate, Florence Oregon