absorption of inventory - how long?
By Howard Sumner, Your Real Estate Source, Your Results Solution!!
(Howard Sumner Consulting)
Time it will take for Inventory to be “sold” or absorbed in the market One question I get asked is how the market is doing. There are many ways to answer the question, yet I believe one the best is looking at absorption of the inventory by the market and the relation of pending sales to the active inventory.So first let’s look inventory and the rate at current levels of sales how long the market will take to absorb or “buy the inventory”. As of this morning June 20th 2016 there are 550 “homes” on the market (the first column). I believe the best way determine how long the market will take to “buy the inventory” is go back and see by pending date how far back it took to find that many closed transaction. As of this morning I had to go back 149 days (fifth column) or basically 5 months to...