Absorption Rates – March 2012

The absorption rates for March definetely are showing signs of a stable market specially if you compare them to February’s rates almost identically with a slight increase :-). As we start going into the Spring and Summer, things will only get better! Happy Monday everyone!!

Absorption rate are a calculation of supply and demand. Absorption rate is calculated by dividing the total number of active sales by the number of homes sold in a month. The resulting answer let’s us know how many months it will take to sell the entire inventory of homes. I love numbers and have started to calculate the absorption rate for the DC Metro Area, more specifically, I will be focusing on Northern Virginia since that’s my area of expertise and state of licensure.

The numbers used for my calculations are from MRIS MLS and are deemed reliable but not guaranteed. Remember, real estate is local so here are the absorption rates for February in Northern Virginia:

City of Alexandria – 4.6 months
Arlington County – 5.0 months
Clarke County – 8.2 months
Fairfax County – 5.0 months
City of Fairfax – 4.1 months
City of Falls Church – 5.6 months
Fauqier County – 9.0 months
Frederick County – 7.4 months
City of Fredericksburg – 10.3 months
Loudoun County – 6.6 months
City of Manassas – 5.2 months
City of Manassas Park – 5.9 months
Prince William County – 6.5 months
Spotsylvania County – 7.2 months
Stafford County – 8.9 months
Warren County – 12.3 months

What do these numbers mean? Typically, if absorption rate is 5-7 months, it is considered “normal market.” If it’s below 5, it’s a “sellers market” and if it’s above 7, then it’s a “buyers market.”

So if you’re a seller and want expert advise to list your home or a restless buyer and want to roam around to find your next home, call me today at 703-577-4320!

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One comment on “Absorption Rates – March 2012

  1. […] Absorption Rates – March 2012 […]

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