A Key to Reading the Market

Wednesday, February 18th, 2026

When it comes to real estate, one of the most useful tools for understanding market conditions is something called the absorption rate. Simply put, the absorption rate measures how quickly homes are selling in a specific market. It's calculated by dividing the number of homes sold in a given period by the number of homes currently on the market. This figure gives us a "speedometer" for the market—how fast or slow homes are moving.

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