Absorption Rates and Real Estate Inventory Levels in Charlotte NC

Absorption rates for real estate in Charlotte NC are a measure of recent real estate activity and can provide valuable insight when it comes to current and recent real estate market trends in Charlotte NC.

The absorption rate for a Charlotte NC area or neighborhood is a measure of how much time it would take to clear all of the real estate inventory based on the recent rate of successful real estate sales.   To fully gauge real estate market conditions in Charlotte NC, recent absorption rates have to be compared to currently available real estate listings (supply).

For example, if there have been 3 successful real estate sales over the past 3 months the absorption rate = 1 sale per month.   Based on that absorption rate, if there are 6 available real estate listings, it would take 6 months to clear out the current real estate inventory at the rate of 1 sale/month.  In this example the real estate inventory would be 6 months, which is considered a balanced real estate market – relatively equal numbers of buyers and Charlotte NC homes for sale.

More than 6 months of real estate inventory in Charlotte NC favors buyers, less than 6 months of real estate inventory favors sellers.

Many times there is a difference in Charlotte NC real estate inventory and recent real estate sales by price range so that’s an additional point of distinction and consideration since buyers typically have a set price range they’re searching within.  In other words, a $200,000 buyer is not a candidate or audience for $300,000 and up Charlotte NC homes for sale.

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Copyright©2009 by Diane McDermott, All Rights Reserved, “Absorption Rates and Real Estate Inventory Levels in Charlotte NC”


About dianemcdermott

Diane is deeply passionate about serving single and divorced women home buyers, first time home buyers and new to the area buyers navigate the Charlotte area home buying process. Having navigated separation and divorce she has immense respect for the stress of transition and need for a home living situation that supports and nurtures. She connects and guides clients as they navigate the home buying process, transitioning to a space they'll love calling home. McDermott Real Estate
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