The absorption rate measures how quickly available inventory is being sold. It is calculated by dividing the monthly sales pace (homes sold in the last 90 days divided by three) by active inventory, expressed as a percentage. A rate above 20% indicates a seller's market. Around 15-20% is balanced. Below 15% favors buyers. Rates above 50% reflect a very competitive market where demand significantly outpaces supply. Source: MLSPIN.
617.515.7715 | Source: MLSPIN
Back-end = housing costs + all other monthly debt ÷ gross monthly income. This is the number lenders focus on most.
How do you plan for a rate that keeps moving?
Nobody knows where rates go next. What we do know is how far they have moved in the past, and that range is enough to build a budget that holds up. Buyers can stress test a payment before they fall in love with a house. Sellers can see which incentive does the most for a buyer with the same dollars.
| Town | Median Price | DTO | L/S Ratio | Absorption | Strength |
|---|
What the national numbers miss
Every year the National Association of REALTORS® publishes what the typical American buyer and seller actually did. It is the best national picture in the business. It is also not this market.
First-quarter performance across the markets I serve, broken out by property type. Source: MLSPIN.
Data is context. Analysis is the answer.
MLSPIN tells you what the market did. A conversation tells you what it means for your specific property, your timeline, and your goals.
Schedule a Call with Mike130 Concord Ave, Belmont MA 02478 | 617.515.7715 | [email protected] | MA License #9515899 | Coldwell Banker Realty Office #8064
All data sourced from MLSPIN active and closed listing export. Absorption rate calculated as closed sales divided by active listings. For educational and informational purposes only. Does not constitute a property valuation or investment advice.
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