Understanding Real Estate Absorption Rates Before Selling Your Nashville Home


There is far more to selling a Nashville home than cleaning the carpets, slapping on a fresh coat of paint, upgrading fixtures and having a Realtor post a “For Sale” sign in your front lawn. First things first, you need to understand your current market conditions and absorption rate in order for you to price your home competitively.



So what is a real estate absorption rate?

Simply stated it is the number of weeks it takes to sell the current inventory at the present rate of sales – an extremely important element all sellers must factor in to get their home SOLD.


(No market is the same so if you are outside the Nashville area then I encourage you to keep a close eye on your market and consistently calculate the numbers each month.)

Figuring Out The Current Absorption Rate


You need to know 2 figures:

1)      How many listings are on the market?

2)      How many listings sold that month? 

*All pending sales or under contracts are considered listings as they haven’t SOLD yet!


As of 02/04/14, there are currently 2,901 single family homes listed on the market in Nashville, TN (Davidson County). During the month of January 2014 a total of 467 homes were sold.


Multiply the number of SOLDS last month by 12 (# of months):

467 x 12 = 5,604 (homes that would sell in 12 months)


Then we take 5,604 and divide it by 52 (# of weeks in a year):

5,604  ÷  52 = 107.77 (# of homes that will sell each week)


Then we take 2,901 (# of homes currently on the market) and we divide that by 107.77 (# of homes that will sell each week):

2,901  ÷ 107.77 = 26.91(# weeks it will take to sell current inventory)


26.91 is the current Nashville absorption rate!

It will basically take just over 6 months to sell all the Nashville homes that

are currently for sale. 



If you or someone you know is interested in buying or selling

a Nashville Home please contact:


Emily Lowe 

The Lipman Group | Sotheby’s International Realty 

Office: (615) 463-3333 / Cell: (615) 509-1753