Fort Lauderdale Homes : Absorption Rate Indicates 23 Months Of Inventory

If you are looking to buy a home in the Fort Lauderdale real estate market or if you are looking to sell a Fort Lauderdale home, there is a key stat that either party should avail themselves of. That stat is called the “absorption rate”.

The absorption rate is a direct analysis of supply and demand. It forecasts how long it will take to sell the available inventory in a market using the current level of sales When it comes to understanding the climate of the Fort Lauderdale real estate market, one thing rings true. It’s absolutely a buyer’s markethere in Fort Lauderdale and throughout the South Florida real estate market.

An overwhelming abundance of inventory, coupled with slow buyer activity and you have the makings of the perfect storm of supply and demand economics. Simply stated, Buyers in this market can choose to be discerning and write offers on their terms.

A buyer’s market can be in part defined market by absorption rates. The Fort Lauderdale real estate market absorption rate is the mathematical relationship of supply and demand. The Fort Lauderdale real estate market absorption rate is the number of months it would take to sell the entire inventory of homes in the area if the current pace of sales were to stay constant.

Here is a short video explaining absorption rates as it relates to the current data in this metropolitan area:

[kml_flashembed movie="http://www.realestateradiousa.com/videos/absorb_skin.swf" height="400" width="500" /]So, is it a good time to buy Fort Lauderdale real estate market homes and condos? Knowing your area’s Absorption Rate, helps to track trends. Understanding the market and where it is headed is part of our job as real estate professionals.

Understanding the area’s absorption rate will help you prepare an offer to buy a property that reflects your knowledge of the market and your ability to convey to the Seller the position that they are in.

This can often validate your offer price and show a Seller that it is in their best interest to accept the offer that you are presenting. Don’t assume the Seller knows. Many real estate agents do not understand absorption rates and may not have explained this data to their Seller clients.

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3. Fort Lauderdale Real Estate Mortgage Report & Mortgage Rate Update 1
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6. Fort Lauderdale Real Estate Mortgage Report & Mortgage Rate Update for the Week Of June 16, 2008