Housing Absorption Rates Rochester MN

Absorption rate is the analysis of supply and demand for housing relative to a price range. It answers the question, how long would it take to sell off the current housing inventory if another house did not come on the market? The National Association of REALTORS states that an absorption rate of less then 6 months starts to favor the Seller and an absorption rate greater then 6 months starts to favor the buyer.  Rising or declining price trends can be predicted based on absorption rate numbers. The higher the absorption rate, the more downward pressure on prices due to an over supply of housing inventory. The lower the absorption rate, prices will tend to rise due to a tighter supply of housing inventory.

Data supplied from the Southeast Minnesota Association of REALTORS Multiple Listing Service (MLS) and compiled by Shawn Buryska, CRS, GRI, ESA – Coldwell Banker Burnet Realty, Rochester Minnesota 55901

Data parameters: Property type - Residential; Type of Property - Single Family; List Price - See table above; City - Rochester; Dates - 12 months back from the end of the last month