Absorption Rates give us an indication of how long it will take for Listed properties to be fully sold out based on last year’s rate of sale. In other words, if no new properties came on the market, we could predict how many months it would take to have all of the properties sell in each price class given consistent rates of sale.
The Absorption Rates shown is generated by taking the number of properties remaining on the market and dividing it by the average rate per month of properties that actually sold as reported in the NW Montana MLS in Flathead and Lake Counties.. For example if 5 properties sold and there are 20 on the market, it would take 4 years to sell out completely. In the following charts (Vacant Lane and Residential) you can see how the trends move in each price range. This can help Sellers to not only look at comparable sales when setting their list price, but also understand how many buyers are picking up homes or land within that price range.
