MESA COUNTY CO ABSORPTION RATES, OCTOBER 2011

Real estate absorption rates are used to show us how long it would take to sell off the current inventory in a given market. As agents, we use this information during our listing appointments as a guideline to advise a seller on how quickly their home may sell. To give you some history, and I will use the $200,000 to $300,000 bracket as an example, we began 2010 year with 9.1 months of inventory and hit 11.4 months of inventory in October of 2010. In 2011, we came into the year with over 13 months of inventory in this price bracket which means it would take over a year to sell the total inventory listed at that time. Currently, in October of 2011, our months of inventory based on the previous 6 months of activity, is only 6.4. While that may still sound like a long time to sell a home, it's less than half of what it was last year.

As a general guideline, absorption rates above 20% are indicative of a seller's market. With the current absorption rate at 43.3% for this price range, I can say with suffice that this price range is currently experiencing a seller's market. In addition, both the $0 to $100k and $100k to $200k price ranges are also currently experiencing a seller's market based on absorption rates above 20%. Many homes in this price range are receiving multiple offers, particularly the foreclosures and HUD homes that generally are priced below market value. All markets over $300k, however, are still considered a buyer's market with absorption rates below 20%. Whatever your price range may be, there is plenty of opportunity out there. If you have been thinking all year about buying a home, this just may be the time. Please call me if I can help.