Absorption Rate in Genesee, Colorado for Current Market October 2007

Absorption Rate
The absorption rate is the speed (rate) at which houses, matching particular criteria, are sold.
Area/Neighborhood____Genesee_______
Syle of House____Mountain__________
Age of House__________________________________	1975-2000
Size of House__________________________________	3500-4500
Price Range___________________________________	700-1.1M
Other_________________________________________
Using the above Criteria, The Multiple Listing Servie (MLS) reports that there were _____11__
houses sold in the last __6______ months. Dividing the number of sales by the number of
months, tells us how many homes (meeting the above criteria) the market is absorbing each
month, i.e., the monthly absorption rate.
8	/	6	=	1.3333
Number of Sales	Number of Months	Sales per month
Months of Inventory
Using the absorption rate data the criteria above, we can now calculate how many months of
inventory here is on the market for houses meeting that criteria.
The MLS reports that there are ___20_______ houses currently for sale (active listings) that meet the
criteria. Dividing the number of active listings by the number of sales per month tells us how many
months it will take to sell the existing inventory.
11	/	1.33333	=	8.25
Number of Active Listings	Number of Sales per month	Number of months needed
to sell existing inventory
Sellers Market	Transitioning Market	Buyers Market
1-3 Months	3.5-6.5 Months	7-12 Months

Posted by Malou van Eijk ~ Foothills Real Estate on 10/31/2007 11:19 AM

This post has been included in Colorado Information Jefferson County, CO Information Golden, CO Information

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