Portland Metro Market Report Year-End Comparison

Portland Real Estate Absorption Rates

First, let's discuss "Absorption Rates." The absorption rate is, bascially, the rate that homes sell in an area. The lower the absorption rate, the faster homes are selling (Seller's market). The higher the rate, Buyer's market.

• Sellers Market: 1 to 5 months supply of homes
• Neutral Market: 5 to 6+ months supply of homes
• Buyers Market: More than 6 or 7 months' supply of homes

How Is Absorption Rate Calculated?

To calculate the absorption rate, take the number of homes that sold in a month for an area and divide it by the total number of homes for sale at the end of the month. As you can see from the above graph, the Portland Real Estate Market has several Areas. To calculate the absorption rate for each area, I took the ACTIVE LISTINGS at the end of December 2011 and divided that number by the number of SOLDS, also the end of December.

A Year in Review - Portland Real Estate Absorption Rates in December 2010 Compared to December 2011

If this chart doesn't blow you hair back . . . these are the numbers comparing December 2010 to December 2011 absorption rates. You can clearly see that the Portland Metro Real Estate Market is changing. When I tell Buyers to think about buying seriously now . . . I'm not making that up.

Portland Real Estate Market Areas

Area 141 - N Portland

Area 142 - NE Portland

Area 143 - SE Portland

Area 144 - Gresham / Troutdale

Area 145 - Milwaukie / Clackamas

Area 146 - Oregon City / Canby

Area 147 - Lake Oswego / West Linn

Area 148 - W Portland

Area 149 - NW Washington County

Area 150 - Beaverton / Aloha

Area 151 - Tigard / Wilsonville

Area 152- Hillsboro / Forest Grove

More Portland Real Estate Market Reports

• Portland Real Estate Market Report For December 2011
• Portland Real Estate Market Year in Review 2011
• The Absorption Rate Three Years Portland Real Estate
• Market Reports Metro Portland SOLDS
• Portland Housing Market Report