We were calculating some absorption rates for the following North Seattle neighborhoods, Haller Lake, Broadview, and Maple Leaf. We figured these rates would be a good blog post.
The absorption rate for an area is an estimate of how much inventory is currently available. It is expressed as the time period that it would take to absorb all of the currently available inventory of homes if the sales rate were to stay constant and no new listings were to come on the market. Here is the formula we used to calculate the absorption rates:
Absorption Rate (weeks) = Current Available Inventory/(Annual Sales/52 Weeks)
Haller Lake had the highest absorption rate of the three neighborhoods at around 21 weeks, compared to Broadview and Maple Leaf neighborhoods which were both around 14 weeks of inventory. The City of Seattle as a whole had an absorption rate of around 18 weeks, and I included Washington state’s absorption rate to show how “good” we have it in Seattle.
These statistics are gathered from the Northwest Multiple Listing Service, and are considered reliable, but are not guaranteed.