(This guest post originally appeared at the author’s blog)
Absorption defined for the purposes of this chart as: Number of months to sell all listing inventory at the annualized pace of sales activity.
The absorption rate continues to improve from a bottom up, approaching the 10-year 10.0 month average for all three market areas (the data set is too thin for a reliable trend for Uptown).
The East Side absorption rate slows considerably above $1.5M. Co-ops are considerably slower than condos above that threshold. Condos generally absorb faster than co-ops.
The West Side absorption rate has reduced in higher price segments, up to $3M. Co-ops generally absorb faster than condos below $3M but take much longer than condos above the threshold.
The Downtown market absorption rate has reduced in higher price segments, up to $3M. Co-ops and condos are consistent below the threshold but co-ops absorb considerably slower above the threshold.
Note: This chart series does not include shadow inventory (properties ready for market but not yet listed for sale) so it understates condo absorption.