Third quarter real estate statistics show that Highlands Ranch and Lone Tree are averaging a lower absorption rate in comparison to other featured areas, which can translate into quicker home sales. 
Considering Absorption Rate is one way to measure the health of our real estate market. Absorption Rate designates the number of months of housing supply on hand. The larger the supply, the more competition there is for sellers and the higher likelihood that prices will drop or concessions will be offered.
Second quarter statistics showed seven areas that were considered sellers' markets. The quarter, we only have three. The market has definitely slowed.
More Months of Supply = Buyer's Market = Possible Reduced Pricing and/or Concessions Fewer Months of Supply = Seller's Market = Possible Price Increases and/or Bidding WarsThe commonly accepted separation between markets is:
Seller's Market 1-4 months of supply
Neutral Market 5-6 months of supply
Buyer's Market 7 months and above
Area | July AR | Aug AR | Sept AR | Avg. AR | Market Condition |
| Aurora North | 6.76 | 6.64 | 7.51 | 6.97 | Neutral |
| Aurora South | 5.93 | 6.09 | 6.68 | 6.23 | Neutral |
| Broomfield | 8.28 | 7.50 | 9.96 | 8.58 | Buyers |
| Douglas Cnty West | 6.98 | 7.08 | 9.51 | 7.86 | Buyers |
| Douglas/Elbert/Parker | 6.40 | 5.96 | 8.02 | 6.79 | Neutral |
| Highland Ranch/Lone Tree | 2.23 | 2.79 | 4.32 | 3.11 | Sellers |
| Denver Northeast | 5.82 | 6.66 | 8.65 | 7.04 | Buyers |
| Denver Northwest | 4.78 | 4.99 | 6.25 | 5.34 | Neutral |
| Denver Southeast | 5.63 | 5.43 | 8.14 | 6.40 | Neutral |
| Denver Southwest | 5.98 | 6.24 | 7.60 | 6.61 | Neutral |
| Jeffco Central | 4.38 | 6.89 | 7.89 | 6.39 | Neutral |
| Jeffco North | 3.70 | 4.86 | 6.06 | 4.87 | Sellers |
| Jeffco South | 4.50 | 4.11 | 6.62 | 5.08 | Neutral |
| Jeffco West/Golden | 5.35 | 5.27 | 10.27 | 6.96 | Neutral |
| Jeffco North Central | 5.28 | 4.57 | 6.91 | 5.57 | Neutral |
| Jeffco South Central | 4.20 | 4.74 | 4.82 | 4.59 | Sellers |
Remember to look at more than one month of statistics to get a better picture on where we are and when might be a good time to buy or sell. I still strongly recommend buying if the time and circumstances are right. Homes are still selling, however a seller needs to price it right and make sure it shows well.
For more information on Absorption Rates, check out these links.
Second Quarter Residential Absorption Rates - Denver Area Real Estate 2007
Buyers or Sellers Market? Absorption Rate is the Key
Based on information from Metrolist, Inc. for the period of July 1, 2007 to September 30, 2007. Note: This representation is based in whole or in part in content supplied by Metrolist, Inc. does not guarantee nor is in any way responsible for its accuracy. Content maintained by Metrolist, Inc. may not reflect all real estate activity in the market. 
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Who says the market is bad? The media does, but it sure doesn't look like it in your area Jennifer! A great chart to help understand the market.
Joanne- I think we've all forgotten what any market is like besides a seller's market. It sure requires us to stay on top of things. Is your market still a sellers' dream?
Jennifer, it looks like Highland Ranch is a WINNER based on the data. What a great service you provided the local reader.
Thanks Gena. I think it helps my readers make their own decisions on what the market holds for them. It also keeps me on top of things. I have a listing in Highlands Ranch that went under contract in under a month. It is a wonderful area.
Great information as usual Jennifer. Keep up the great work - you've got a good market in which to do it!
Thanks Chrissy. It's interesting to look at the data and see what is going on. I hope to actually begin to see improvement next spring. We'll see.
Jennifer-Your quarterly reports are so informative for the consumer. You are making it so simple in one view for everybody to read and understand what the market is doing. Great job! Where do you get the tables from? You can send that in a separate email if you'd like. It just looks really nice in your presentation.
Julie- The quarterly reports help me keep on top of the market and my clients love them. I built the table in Google Docs. Here is a blog I wrote about how to do it. I hope it's helpful!