CalculateRealEstateROI

House Flipping

Absorption Rate

Rate at which available properties sell in a market over a given period.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Months of inventory = active listings ÷ monthly sales. <4 months = seller's market.

Examples

  • 120 active ÷ 40/mo sales = 3-month absorption (seller market).

Common mistakes

  • Buying flips in 6+ month markets.

Related questions