Absorption Rate in Hot Springs,AR Homes for sale
It sounds a lot like something from High School Chemistry Lab,
but it is another statistical report that you might run into when looking over Hot Springs Homes for sale information. He's what it is and how we can use it to see what the future of an area of the Hot Springs real estate market is performing.
So, your agent tells you what the absorption rate is, and you don't want to look uninformed in the information age... he is what it is, and it is relatively simple. It is a comparison of home currently on the market to the actual SALES of homes...which is important, in a sense. Please keep in mind that the criteria needs to be rather tight for it to be truly accurate...but it IS an indicator of the market's performance...GENERALLY speaking (as is all of this).
Here is the formula, or how a version of this plays out. We will look at Residential Single Family Homes in Garland County Arkansas (Hot Springs is the county seat) and those homes listed with the Hot Springs Board of Realtors®.
There are 566 Residential Single Family homes for sale today. So far in the last year 781 Homes in the same criteria CLOSED with a sale. The inventory in this criteria turned over almost 1.4 times in the last year. Divide 12 by the turnover rate, and our absorption rate is 8.6... if no new listings for residential homes come up for sale in Hot Springs, in theory, we have an 8.6 month suppy of inventory.
With an 8.6 month supply of homes for sale, we are still in a buyers market here, although we are approaching just a "normal" market.
Sellers still need to aggressively price a home, stage and upgrade, and consider offering incentives to assist in moving a property.