Absorption Rate or a Misnomer?

Absorbtion Rate
Hmmm. Maybe. Let's think about this. Do we use "Absorbtion Rate" calculation in determining when our warehouse supply of Rice Krispies will be depleted? I think we do--but I'm not an MBA. Someone chime in here---

If I have 10,000 boxes of cereal in my warehouse and I sell 5,000 a month every month the supply of ceral boxes will be absorbed by the consumer in sixty days/two months. I know this is accurate and reliable because the Rice Krispie today is the same as it was decades ago (I assume) and for decades, in all economies, kids have been eating Rice Krispies with milk and sugar, and butter, and gooey marshmellow at a consistent rate. Drought years, cold year, bull markets, and bears...Rice Krispies are consistent and good food loved by everyone.

Where I am not trusting absorbtion rates is when we try to use the formula in the discussion of pricing homes and estimating the health of the market. People don't buy homes by the time on the market so to say I should expect 10 months to sell because there is a 10 month supply of homes is silly. That idea assumes my house would sit in the back of the real estate warehouse to age until the less fresh houses are moved out.
You're reading this and thinking "is anyone saying absorbtion rate affects my time on the market?" You bet they are.

The number of homes on the market in any category, price, style, age, size, area, matters because of the relationship the inventory has to capturing the attention of buyers. The higher the ratio of homes available to any category the less likely those homes will sell at any speed considered "quick". Homes are acquired by people who want to live where other people want to live and scarcity drives decisions. Go into any neighborhood today with a double digit number of homes for sale and you might expect to see the average time on the market relatively high.

What's my point? Here it is---before thinking your house won't sell or it will take multiple years, we should meet. Homes priced right, in good condition, and attractive locations will sell.

Time always gets too much attention--it's not time but what we do in the time we have that matters.