Absorption rate is a key real estate metric that shows how quickly available homes are selling in a specific market.
It’s calculated by taking the number of homes sold and comparing it to the total number of homes currently for sale.
How to use the number:
- 0–3 months → 🔥 Seller’s Market (homes selling quickly)
- 4–6 months → ⚖️ Balanced Market
- 7+ months → 🧊 Buyer’s Market (homes sitting longer)
See how each town compares here:
| Corolla | Duck | S. Shores | Kitty Hawk | KDH | Nags Head | ||||||
| Active – | 145 | 32 | 18 | 30 | 100 | 62 | |||||
| Sold/Month – | 17.8 | 7.3 | 7.8 | 7.1 | 21.8 | 14.9 | |||||
| Abspt Rate – in months |
8 months |
5 months |
2.5 months |
4 months |
4.7 months |
4 months |
|||||
| *NL/Month | 37 | 11 | 3 | 9 | 42 | 13 |
(*NL/Month = New listings each month)
We know a market is shifting when the Absorption rate goes over 6 AND the number of new listings each month far exceeds the number selling each month. We are watching Corolla and Kill Devil Hills closely right now.
