Absorption Rates in Omaha

Hi everyone thanks for visiting DEEB Realty’s video blog.

Today, I wanted to talk about absorption rates. If you aren’t familiar with absorption rates, they are a great tool to use on listings. What is an absorption rate? It is a way to get an accurate picture of how the market is doing.

In Omaha, the absorption rate is 4.5

What does this mean? With our current inventory, if no other homes came on the market, it would take 4.5 months to sell everything. We get this number by taking the amount of closed transactions in the first six months of the year, divide by six and then divide that number into the amount of current listings.

So, I wanted to take a look at more specific types of homes and their absorption rates.

Homes priced $200,000 and under have 2,766 current listings which give us an AR of 4 months. Homes priced between $200,000-$300,000 have 722 listing which also gives us an AR of 4.

As we get into higher priced homes, though, the buyers’ pool becomes smaller so the absorption rate increases. Homes priced between $300,000-$500,000 have an AR rate 6.6 and homes above $500,000 are at 13.7 months.

These are really helpful when you are getting ready to sell and want to know how long your home may be on the market.