How It Affects Home Pricing and Sale Speed

 What is Absorption Rate and How Does It Impact Your Home Sale?

If you’ve been researching home selling strategies, you’ve probably encountered the term "absorption rate." This metric plays a key role in determining how quickly your home will sell and at what price. Let’s dive into what absorption rate is and why it matters for your home sale.

1. Understanding Absorption Rate

Absorption rate is the rate at which homes sell in a given area. It's calculated by dividing the number of homes sold in a month by the number of available homes. This tells you how long it will take to sell all homes in the area at the current pace.

2. What Does It Mean for Sellers?

• Seller's Market: Absorption rate over 20% means a fast-moving market, often leading to multiple offers.

• Buyer’s Market: Absorption rate under 15% means less demand, which can result in longer time on market.

Want to know your home’s absorption rate? Contact Jensen Group Realty to understand how absorption rate impacts your Granite Bay home sale! (916-406-8810), (925-918-2628)