How is Absorption Rate Calculated?
Knowing Western New York’s Absorption Rate, helps to track trends in the WNY Real Estate Market. Absorption rate is NOT an exact science. Figuring it is based on the premise that one will be looking for a trend. To calculate Absorption rate in WNY you will need:
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How many listings are currently on the market in a given area? In this instance listings are both active and pending homes.
- How many listings sold last month?
Now that you know those numbers, you will need to:
- Add together the number of Active/Pending Listings =Â 1,000
- # of Sold Last Month 100 x 12 divided by 52 = 23.08
- # Sold of Active divided by the number of sold 1,000/23.08 = 43.33 weeks
- Absorption Rate = 10.08 months
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While absorption rate may just be a guide, it is another valuable tool for buyers and sellers to better understand the real estate market and assist them to make informed decisions about Real Estate.
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Niagara County Absorption Rates:
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Lewiston – 31.40 weeks
Youngstown – 100 weeks
Cambria – 86.95 weeks
Wheatfield – 22.37 Weeks
Pendelton – 43.48 weeks
North Tonawanda – 14.04 weeks
Hartland – 28.99 weeks
Town of Niagara – 126.09 weeks
DeVeaux Section of Niagara Falls – 21.73 weeks
All of Niagara Falls – 26.34 weeks
Lockport – 25 weeks
