Absorption Rates

Absorption rates are a  calculation of how long it will take for all the homes on the market to be sold, or absorbed, at the current rate of sales. I do love numbers, and these are in months, the data used came from the RMLS, (MLS) and is deemed reliable but not guaranteed.  It doesn't come with a warranty either. Maybe an implied warranty but what do I know? I am a Realtor not an attorney. These numbers are for the seven county Metro area. Which is bigger than the four county metro area but smaller than the 13 county metro area. The Metro area of course being the Twin Cities area of Minnesota. 

Anoka County 4.4 Months
Carver County 6.8 Months
Dakota County  4.3 Months
Hennepin County 4.4 Months
Ramsey County  4.2  Months
Scott County  4.9  Months
Washington County 5.4 Months

This is the third month in a row that there have been only minor changes in the absorptions rates, so minor that they are not worth mentioning. The only thing that might be significant is that the inventory of homes on the market continues to drop each month but the absorption rates stay about the same. There are fewer buyers and fewer sellers yet the absorption rate stays the same.  A balanced market is a market where there is a six month absorption rate. The absorption rate is less than six months indicating a sellers market.  It doesn't feel anything like previous sellers markets in some price ranges but with the lowest priced homes it does feel like a sellers market.  Plenty of multiple offer situations and some buyers end up making offers on several homes before they get a yes.  It isn't always wise to offer less than the asking price. Some homes are listed at prices below market value and they are sold to the highest bidder, and usually for more than the asking price.