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Absorption Rate Analysis – April 2025: A Busy Month Influences a Divided Housing Market

 

Despite national economic concerns, April was a remarkable month at JohnHart Real Estate as our agents doubled down on their determination, selling significantly more homes than in March. And that inexhaustible grind was felt in April’s absorption rates. Following January’s unanimous drop, February’s unanimous surge, and another drop-heavy month in March, April finds neighborhoods more split in their favor of buyers and sellers. Let’s dive into the usual FAQs – if you know the drill, feel free to skip ahead to the good stuff!

  • Burbank – 42%
  • Encino – 14%
  • Glendale – 34%
  • Long Beach – 35%
  • Los Angeles – 24%
  • Northridge – 38%
  • Palmdale – 25%
  • Pasadena – 37%
  • Rancho Cucamonga – 36%
  • Reseda – 29%
  • Upland – 28%
  • Valencia-Santa Clarita – 33%
Photo credit: Junkyardsparkle

Absorption Rate FAQs

What is an absorption rate?

We use a statistic called an absorption rate to estimate whether a specific housing market favors the buyer (buyer’s market) or the seller (seller’s market). An absorption rate of 18% or higher is typically regarded as favoring sellers, whereas an absorption rate of 15% or lower is considered an indication of a buyer’s market. Of course, these are guides and not rules. Exceptions will happen!

JohnHart only factors single-family homes in absorption rates. What about townhomes, condos, etc.? 

Our absorption rate analysis is meant to provide insight to our clients, so we want it to reflect their interests. Data suggests that our clients are predominantly interested in single-family homes. We don’t want our condo and townhouse sales to skew the data and create an unrealistic picture of the market. Therefore, to reflect our clients’ tastes, we keep the focus on single-family homes. 

How does JohnHart calculate absorption rates?

We use the universally approved formula: 

Reseda Knows How to Do an Encore

Reseda followed two consecutive months of surges with April’s steepest drop toward the buyer’s favor, a considerable 12 percentage point plummet. But potential Reseda sellers should take heart. The Valley community is still holding a 29% absorption rate, well within the seller’s market. No records broken here. We’ve seen Reseda lower as recently as January. 

Upland Wakes Up

Upland was right behind Reseda in April with an 11 percentage point plunge toward the buyer’s market. After stagnating for two months with a 39% absorption rate, this reduces the city to a 28% absorption rate. At first glance, it may not seem remarkable. But this is actually the lowest we’ve ever seen Upland since we’ve started publishing our absorption rate analysis. So, if you’ve been considering making a move to Upland, we wouldn’t advise waiting for the water to get any warmer. 

Northridge is Going to Northridge

Fitting with the split feeling of April, the highest surge was also by a factor of 12 percentage points. This was in Northridge, a neighborhood recognized for its dramatic absorption rate swings. The surge puts Northridge at an overall 38% absorption rate for April; not a particularly stunning number for this community. We’ve seen it swing much higher and much lower, so we’re curious to see what May brings. 

Keeping Things Low in the Valley

Photo credit: Encino Neighborhood Council

The lowest absorption rate for the month goes to a Valley neighborhood that’s no stranger to the buyer’s market. Encino once again crosses the universal threshold of the buyer’s favor, dropping from a 15% to a 14% absorption rate in April. As if you needed more encouragement to browse the Encino housing market!

The High Point of April

The highest absorption rate of the month should also come as no surprise. Burbank, in not even close to its highest all-time absorption rate, handily secures its place in the seller’s favor with a 42% absorption rate. It’s the highest it’s been in 2025, but it was at a 52% absorption rate in December, so this isn’t really a jaw-dropping moment for the city. 

Heating Up

With April’s split, each neighborhood now demands careful scrutiny heading into the warmer months. If you have any real estate goals for the summer, we recommend partnering with an insightful real estate agent now so that you can face the more competitive months with your game face on. We’ll see you in May when we expect things to heat up even further. 


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