Week of February 18, 2019

Absorption rate change

Year-over-year change in absorption rate

Year-over-year change in absorption rate
State Name Year-over-year change in absorption rate
National -14.4%
Alabama 7.7%
Alaska No data
Arizona -3.3%
Arkansas -10.1%
California -34.8%
Colorado -16.0%
Connecticut -0.2%
Delaware -17.1%
District of Columbia -12.9%
Florida -11.4%
Georgia -16.0%
Hawaii -36.4%
Idaho 15.1%
Illinois -6.3%
Indiana -0.2%
Iowa -26.2%
Kansas -15.5%
Kentucky -14.3%
Louisiana 11.0%
Maine -8.8%
Maryland -22.3%
Massachusetts 1.4%
Michigan -16.3%
Minnesota -0.8%
Mississippi No data
Missouri -1.6%
Montana -20.4%
Nebraska No data
Nevada -27.3%
New Hampshire -18.9%
New Jersey -25.7%
New Mexico No data
New York -34.3%
North Carolina -2.2%
North Dakota No data
Ohio -0.0%
Oklahoma -2.8%
Oregon -16.7%
Pennsylvania -8.4%
Rhode Island -25.8%
South Carolina 2.4%
South Dakota -39.3%
Tennessee -4.1%
Texas -18.6%
Utah No data
Vermont -11.3%
Virginia -17.8%
Washington -32.6%
West Virginia -18.8%
Wisconsin -24.0%
Wyoming No data

This map shows the fluctuation of the absorption rate per state from October 2017 to March October 2018, and illustrates some regional trends as well.1 The absorption rate refers to the rate at which homes sell at the current market pace. It’s calculated by using three data points: time frame, number of homes sold within that time frame and number of active homes within the time frame. A lower absorption rate means less homes are being sold in a specific time period, indicating more supply and lower home prices. A higher absorption rate implies less supply and higher prices.

Nationwide, the absorption rate for October 2018 was 58.3%, which is down 14.4% from a year ago. Interest rates and affordability may be contributing factors to the decrease in many parts of the country.

Absorption rates declined in 37 states from October 2017 to October 2018. The five states with the largest decreases were South Dakota (-39.3%), Hawaii (-36.4%), California (-34.8%), New York (-34.3%) and Washington (-32.6%). This may signal moderate cooling of buyer demand there.

Meanwhile, Idaho and Louisiana showed absorption-rate growth of 15.1% and 11%, respectively, which may suggest that buyer demand exceeded available housing inventory.

1 Source data: CoreLogic®

Data date: 01/10/2019

 

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