Friday, September 9, 2016

Florida Keys Absorption Rates ... No We're Not Talking About The Quicker Picker Upper

Florida Keys Absorption Rates  - No were not talking about the Quicker Picker Upper,
and Rosie the Diner Waitress (RIP Nancy Walker), cleaning up your spilled Margaritas.

We're talking about Property Absorption Rates. What the heck are Absorption Rates?? Glad you asked.

Absorption Rates give us an indication of the Market's current. Where the Market's been and most importantly where its going.  To distill it down, an absorption rate is considered the quantity of months a specified inventory of property would take to sell out if there were no more properties coming on the market. This gives a perspective as to whether it is a Buyer or Seller's Market or if it Balanced.  This can be valued and critical information if you are considering buying or selling property. The formula is the quantity of Sold Properties of a certain criteria over the course of a year, divided by 365.  That number is then multiplied by the number of Active Properties and then divided by 30, giving you the quantity of months it would take to sell out.

EG: 150 Sold Properties and 250 Active Properties:  150/365=.4109,  multiplied by 250 = 102.7, divided by 30 = 3.4.  Therefore, the rate to sell all of the Active Properties is 3.4 months.  Yes, yes, I know those of you not keen on math are having your heads spin like Linda Blair in the Exorcist, but its important information to have.

Our Keys Rate is similar, though 5-7 month is our "Even"
Different Real Estate Markets have different ratios as to what is seen as a "Par" market. In the Keys, an Absorption Rate of  5-7 months is seen as basically par.  Under that it is seen as a Seller's Market, above it is a Buyer's Market.

Below are some graphs that your Conchquistador uses to track various Absorption Rates for various Neighborhoods, Keys, and Price Ranges.  This comes in VERY handy when negotiating price.

Click on Chart to see larger

Click on Chart to see larger - Rate among neighborhoods

Click on Chart to see larger - Rate by Price Range

Click on Chart to see larger - Rate by Upper. Middle and Lower Keys

So as you can see some really cool info (especially for a stat freak like me!).

I would be delighted to explain further, just give me a call, text, email, send up a smoke signal, or blow a Conch Horn.

Work with an agent who KNOWS the Numbers!  Put the experience and expertise of The Conchquistador to work for you! For more information on the outstanding real estate opportunities that exist in the Keys, call me at 305.439.7730 or email me at