What is absorption rate? How does it impact Boston high rise condos?
Boston high rise condos for sale
When looking into Boston high rise condos either as an investment or as a first home purchase, you’re bound to hear an agent or a broker throw out the term “absorption rate”. An absorption rate is a fairly common market indicator that can help you know when the best time is to list your Boston Waterfront condo on the market, and can help you predict the sale price of a luxury condominium in a given market.
What is an absorption rate?
Simply put, an absorption rate is the total number of months it takes to sell currently listed Boston high rise condo on the real-estate market.
When you put a market value on selling your Boston midtown condo, you know that it may be logically more, less, or the same as when you purchased it. The absorption rate compares your home against others in the area in terms of supply and demand. Is your downtown Boston condo is a hot commodity, or are there better homes out there right now holding up your sale?
If the rate of absorption on the Boston luxury condos around your area has slowed down, then you should lower the listing price. If the rate has increased, then you can increase the listing price and reap the rewards of a bigger sale.
While the math is fairly simple, remember that the real estate market changes almost every day, so it’s best to keep up-to-date information about your local absorption rates. Most calculations will take into account about six month’s worth of home sales.