Hi there,

It’s time, once again, to update you on what’s happening in the local real estate market. One of the key factors I look at is absorption rates.

Absorption rate is a way to look at the number of properties currently on the market and then using the number of recent sales, allows you see how long it would take for every property currently on the market to sell if no new properties became available for sale.

It’s been about 6 weeks since we last looked at city-wide absorption rates together and the numbers have slowed down, but keep in mind that it takes on average 2 months for a property to close, so these numbers are more reflective of the state of the market in mid winter.

Also, notice that Winchester has significantly less properties for sale than another other city in the chart, yet it would take more time for the market to buy up all of the properties for sale in Winchester than in Medford. This shows you why you just can’t look the number of properties for sale to see what’s going on in a city.