We’ve come to expect lower absorption rates in January, but January 2024 more than understood the assignment. All except one neighborhood dropped further into the buyer’s favor. One dropped further toward the buyer’s favor than we’ve ever seen in a single month. Another has officially camped out at the threshold of the universally accepted buyer’s market. And, of course, there’s that one rebellious neighborhood that just has to go further into the seller’s favor, even as the city around it drops closer to the buyer’s benefit. So, let’s take a closer look at a month that shaped up to be a belated gift to Greater LA homebuyers. 

Absorption Rates – January 2024

• Burbank – 26% 
• Encino – 15% 
• Glendale – 37% 
• Long Beach – 42% 
• Los Angeles – 21% 
• Northridge – 46% 
• Palmdale – 28% 
• Pasadena – 32% 
• Rancho Cucamonga – 42% 
• Reseda – 39% 
• Upland – 42%
• Valencia/Santa Clarita – 31% 

Absorption Rate FAQS

If you know this drill by now, you can skip to the good stuff below. Otherwise, you’re likely scratching your head, so let’s answer a few of your questions.

What’s an absorption rate?

An absorption rate is a statistic that we use in the real estate industry to gauge whether a market favors the buyer or the seller. Universally speaking, absorption rates of 20% or higher indicate a strong market for home sellers. On the other hand, absorption rates of 15% or lower indicate a market that favors homebuyers. But, as a quality real estate agent will tell you, these numbers are guides, not rules. 

JohnHart Real Estate doesn’t factor condos and townhouses into its absorption rates. Why?

Our research shows that the vast majority of JohnHart Real Estate’s clients want single-family homes. While we sell (and even sometimes lease) condos and townhomes, we feel that an absorption rate accounting for only single-family homes is more representative of our clients’ interests.