REAL ESTATE TOPICS...Each STATE's Absorption rate change

Absorption rate change

This map shows the fluctuation of the absorption rate per state from November 2014 to November 2015 and shows some regional trends as well. The absorption rate refers to the rate at which homes sell at the current market pace. It's calculated by using three data points: time frame, number of homes sold within that time frame and number of active homes within the time frame. Absorption rates improved in most states in November 2015, particularly on the West Coast. Eight states — mostly found on the East Coast — saw lower year-over-year changes in absorption rate, showing a slower housing market in a small number of regions.

State	Year-over-year change in absorption rate	Absorption rate for November 2015	Absorption rate for November 2014
AL	-51.1%	11.7%	23.9%
AZ	22.1%	20.4%	16.8%
CA	25.1%	36.9%	29.5%
CO	8.2%	68.0%	62.9%
CT	-23.3%	5.7%	7.4%
DE	12.7%	16.9%	15.0%
FL	32.0%	24.2%	18.3%
GA	10.5%	25.6%	23.2%
HI	7.7%	29.8%	27.6%
IA	2.4%	21.8%	21.3%
ID	31.8%	30.0%	22.8%
IL	9.2%	22.0%	20.1%
IN	11.7%	10.8%	9.6%
KY	15.3%	21.8%	18.9%
LA	1.4%	19.6%	19.3%
ME	9.1%	15.7%	14.4%
MI	12.5%	26.0%	23.1%
MN	30.7%	32.7%	25.0%
MO	22.8%	24.2%	19.7%

State	Year-over-year change in absorption rate	Absorption rate for November 2015	Absorption rate for November 2014
NC	15.4%	20.8%	18.0%
NE	24.1%	30.1%	24.3%
NH	13.3%	17.8%	15.7%
NJ	5.2%	12.2%	11.6%
NV	29.0%	29.9%	23.2%
NY	12.0%	12.6%	11.2%
OH	18.3%	23.1%	19.6%
OK	-4.4%	24.6%	25.7%
OR	105.1%	16.1%	7.8%
PA	4.6%	16.4%	15.7%
RI	4.9%	17.0%	16.2%
SC	-7.2%	13.6%	14.6%
SD	-12.1%	19.8%	22.6%
TX	-6.7%	33.6%	36%
VA	-8.4%	17.5%	19.1%
VT	12.5%	10.1%	9.0%
WA	47.8%	49.8%	33.7%
WI	3.6%	20.0%	19.3%
WV	-7.3%	17.4%	18.8%

The table provides the data on which the map is based. Oregon, Washington, Florida and Idaho led in year-over-year changes. Oregon's rate more than doubled from 7.8% to 16.1%, indicating that its market has improved the most since November 2014. Colorado had the highest absorption rate this year and last, reaching 68% in November 2015, an indication of slightly less than one and a half months' supply of homes on the market. The positive rate across almost all states indicates home buying season remained strong through November 2015.

Source data: CoreLogic® 
Data date: 12/25/15

Economic snapshot

This chart gives a quick look at current economic conditions compared to where we've been in the last 30 years. Employment growth is well above its 30-year average but lower than one year ago. The higher-than-average job gains over the past year point to a healthy labor market.

Economic indicator	30-year minimum month-over-month change	30-year maximum month-over-month change	11/2015 month-over-month change	11/2014 month-over-month change
Employment growth	-0.618%	0.479%	0.177%	0.302%
Consumer spending growth	-2.023%	2.770%	0.324%	0.281%
Inflation	-1.131%	0.967%	0.028%	-0.144%

 

The table above illustrates that inflation was at 0.028% in November, which is higher than one year ago but still very close to zero. There is currently very little pressure from inflation on interest rates, keeping them low even after the Federal Reserve's recent interest rate hike. Consumer spending, which accounts for more than two-thirds of the nation's economic activity, is close to its 30-year average, rising by about 0.324%. An improving labor market with wage growth should continue to contribute to consumer spending growth.

Source data: The Bureau of Labor Statistics & Bureau of Economic Analysis 
Data date: 12/28/15