To determine the absorption rate you take the number of active properties divided by the number that have sold in the last 12 months and multiply that 12.
A 16 month absorption rate would indicate a serious buyers market!
Send me a note if you would like to see a calculation of the absorption rate based on the last 6 months sales and the last 24 months sales. This can help determine if the market is getting better or worse. With such a small sample size though these numbers are not that reliable, you would probably want to look at the total number of all 2 bedroom condos and up.