Louisville KY Absorption Rate
In our last blog, we talked about Absorption Rate and what it means. As a Louisville REALTOR, I can feel that we are in a buyer’s market, but what about analyzing this?
In the last 60 days, there has been 1104 single family homes closed in Jefferson County, KY. This would give us an absorption rate of 552/month. This equates to a 10.6 month supply of homes if sales continue at this rate and no new homes are put on the market. By anyone’s definition, this is a buyer’s market.
Condo sales in the last 60 days have totaled 161 in Jefferson County. We have an Absorption Rate of 80.5 per month. Using our calculator, we come up with an 18.8 month supply. WOW!
Focusing on a particular area is important as the old adage of “Real Estate is local” certainly applies. The Highlands has always been a desirable area in Louisville with an eclectic feel. The shops are great and you can bike or walk and save wear and tear on your car. The single family home absorption rate of 61.5/month is compared to condos at 10.5/month. The bottom line is that we have an 8.7 month supply of SFR’s, and a 14.7 month supply of condos. Still a buyer’s market, but much higher Absorption Rate than the entire market in Jefferson County.
If you have any questions about absorption rates in other areas or surrounding counties, feel free to contact us.