Portland Real Estate Absorption Rates
The graph at the right shows the “months” of inventory based on 2009, 2010 and the majority of 2011 for Portland Real Estate.
I could have waited to add December, but will do an update at year’s end.
What is Absorption Rate?
The absorption rate is, bascially, the rate that homes sell in an area. The lower the absorption rate, the faster homes are selling (seller’s market). The higher the rate, buyer’s market.
- Sellers Market: 1 to 5 months supply of homes
- Neutral Market: 5 to 6+ months supply of homes
- Buyers Market: More than 6 or 7 months’ supply of homes
How Is Absorption Rate Calculated?
To calculate the absorption rate, take the number of homes that sold in a month for an area and divide it by the total number of homes for sale at the end of the month.
Determining a Buyers Market vs. Sellers Market
The absorption rate for Portland Real Estate shows the years of the “buyers market” was quite strong in 2009 and during 2010 during this 3-year span.
2011 started off with a very strong buyers market in Portland real estate. But, the absorpotion rate for the past six months have been marginal at best. The Portland Real Estate market has gained an equilibrium since June 2011.
In my earlier reports:
the INVENTORY is off compared to the same months of October and November 2010. I going to try to stay current on these monthly reports and perhaps concentrate on absorption rate in the Portland real estate market to keep my finger on the pulse so Buyers don’t have to. Just check out my reports!
Portland Buyers Agent – Real Estate Expert in the Portland Metro Area
EBA Portland, LLC is an Exclusive Buyer Agency serving the Metro Portland real estate market since 1999. I only represent Home Buyers and never home sellers. If you’re looking for a home anywhere in the Portland Metro area, there is no better representation than an Exclusive Buyers Agent. I assist investors, folks relocating to Portland area, those moving to the Portland area in-state, home buyers who are looking to down-size or move-up and of course . . . love working with first-time buyers. I help Buyers in the Portland Metro market find exactly what they need in the Tri-County markets of Clackamas County, Multnomah County and Washington County, as well Portland cities including but not limited to:
- Beaverton homes for sale
- Tigard homes for sale
- Hillsboro homes for sale
- Lake Oswego homes for sale
- Portland homes for sale
When you’re ready, talk to an Exclusive Buyers Agent. Exclusive Buyers Agents do not work for listing brokerages or Sellers. An EBA’s fiduciary duty is: 100% BUYER REPRESENTATION . . . 100% of the Time. Contact me for all Portland Housing.
Carla Muss-Jacobs, Principal Broker/Owner
EBA Portland LLC
1722 NW Raleigh St., Suite 116
Portland, OR 97209
BEAVERTON OFFICE:
14845 SW Murray Scholls Blvd, #110-518
Beaverton, OR 97007
Office: 503.524.2560
Direct: 503.810.7192
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Great explanation of the meaning and use of the absorption rate, Carla. A balanced market is definitely not a bad thing.