Published on June 15th, 2010 | by Genevieve Williams


Real Estate Absorption Rates

In terms of real estatean absorption rate has to do with how quickly or how slow the inventory of a certain area like Charlotteor a neighborhoodlike Chantillyis being sold.

You take the number of homes solddivided bya defined time period like 6 months to give you homes sold per month. You then take the active number of listings on the mkt and divide that by the number selling per month to give you your absorption rate.

Chantilly’s is currently at 16 months. So its going to take a 1 year and 4 months for all the homes currently listed in Chantilly to sell. So how does Chantilly compare to other areas of Charlotte?

Well, it depends on the area you compare it to. We are selling a little slower than Plaza Midwood whose mkt will absorb their inventory in 13 months. However, we are absorbing our inventory inChantillytwice as fast as Elizabeth. Why?

Plaza Midwood is very similarin theirpricing to Chantilly, but it isa much larger area…they have more homes for buyers to choose from and their business district is very attractive. Elizabeth is an established historic community with a great school system…hence, the homes are more expensive and their community is inahigher price point although its right next door.

Absorption Rates based on first six months of 2010


12 sold / 6 months (1/1/2010 – 6/30/2010) = 2 per month sold
32 active / 2 sold per month = 16 months to absorb inventory in Chantilly

Plaza Midwood

55 sold/6 months= 9 per month sold
123 active / 9 sold per month = 13 months to absorb inventory in Midwood


6 sold / 6 months = 1 sold per month
31 active / 1 sold per month = 31 months to absorb inventory Elizabeth

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For my clients, the best thing I can give them is my undivided attention as well as trying to make the process as smooth as possible for them. Their wishes, wants, and needs are the most important part of the real estate process and my job is to listen, but to also make it fun and enjoyable for them. Buying, selling or investing in a home can be hard. I enjoy guiding my clients through the process, being the expert they need and answering all of the questions they have.

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