Are homes still selling in Pierce County? The short and quick answer is ‘yes.’ Want more detailed information on the rate at which homes are selling? Read further.
Today we’ll use a data point called the absorption rate to determine how quickly homes are being purchased on the Pierce County market. The absorption rate refers to the amount of homes that are being purchased, based on the amount of homes that are on the market. The absorption rate we’ll use for this article is based on pending properties, opposed to closed (a lagging data point).
The concept of absorption rate; if 100 homes went on the market, and 40 of them sold, that would equal a 40% absorption rate. 40% of the homes were absorbed. Conversely, we can have an absorption rate that exceeds 100%, which means that homes are being purchased about as quick as they are put on the market. That was the last two years, but is not the case any more in most markets nationwide. Let’s dig in!