What Color is Your Market? Absorption Rates for Some Albuquerque Horse Property Areas

By
Real Estate Agent with Century 21 Camco Realty

Market Absorption Rate Colors

 Market absorption rate is a good way to get a feel for how hot the real estate market is in your area. Absorption rate basically represents the time it would take to sell all the existing inventory of homes in a certain market at the rate they currently are selling, if no additional properties came on the market in the mean time.

Richard Dolbeare recently created a great blog post that visually demonstrated absorption rate in his Hawaii market with a color-coded chart that really grabbed me as a way of showing very graphically what is goin on in a given market.

Using his tip, I've created a graphic presentation of what is currently going on with the market in some of our Albuquerque horse-friendly areas, by analyzing the current absorption rates in Albuquerque's North Valley areas, Corrales, and Placitas. The figures are all based on data from the Southwest Multiple Listing Service, for single family, detached residential properties currently on the market, and closed withing the past 30 days, as of July 8, 2007.

The color coding above shows much of a buyer's or seller's market an area is in, based on absorption rates. The cooler the color, the more of a sellers' market; the warmer the color, the more of a buyer's market exists.

North Valley, Corrales, Placitas, New Mexico

So, here is the data for Corrales and Placitas, New Mexico, plus Albuquerque's several North Valley areas:

You'll notice that the North Valley and Far North Valley area are within the green band, comfortably in the "Seller's Market" ranges, with absorption rates of 5.8 months and 6 months, respectively.

 The West River Valley is not too far off that standard, with an absorption rate of 7 months, puttin it into the lower part of the "balanced market" range. The Near North Valley is just out of that comfort zone, with an absorption rate of just over 10 months.

 Corrales, however, is in a much more difficult market, with a 17-month absorption rate, well into the "Buyers' Market" range, and Placitas is in fairly dire straits, with a current absorption rate of 32 months. At the current sales rate, it would take nearly three years to close all the Placitas listings currently on the market, even if no other new listings were offered for sale during that time period. This makes it especially important for sellers in Placitas to make sure their properties are well-priced, perfectly staged, and well-marketed!

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Rainer
44,495
Christopher Pike, 803.727.7800
Keller Williams® Realty - Columbia, SC

Carl,

Check out the color for "Strong Sellers'"!

Christopher

Jul 08, 2007 02:54 PM #1
Rainer
21,701
Brian Warden
Choices Real Estate - Bosque Farms, NM

Christopher, who's Carl? And why are you commenting to him on this post?

Jul 08, 2007 02:59 PM #2
Rainmaker
193,804
Mary Strang
Viroqua, WI
Laura this is a very nice chart of your market, good job on preparing this.
Jul 09, 2007 12:29 AM #3
Rainer
44,847
Carl Berg
ERA Wilder Realty, Inc - Columbia, SC

Laura,

     That is a great scale that you got. Go Infantry Blue.

                                       

Jul 09, 2007 06:38 AM #4
Rainer
44,495
Christopher Pike, 803.727.7800
Keller Williams® Realty - Columbia, SC

Brian,

That is Carl and I knew he would be commenting to this blog sooner or later!

Jul 09, 2007 10:36 AM #5
Rainer
44,495
Christopher Pike, 803.727.7800
Keller Williams® Realty - Columbia, SC

Carl,

You know it is Tar Heel blue!

Jul 09, 2007 10:38 AM #6
Rainer
44,847
Carl Berg
ERA Wilder Realty, Inc - Columbia, SC

Sorry Airborne, Infantry Blue.

                                      

Jul 10, 2007 01:26 AM #7
Rainer
44,495
Christopher Pike, 803.727.7800
Keller Williams® Realty - Columbia, SC

Carl, I'm sure it is UNC blue!!

Jul 10, 2007 02:36 PM #8
Rainmaker
150,060
Janie Coffey
First Coast Sotheby’s International Realty - Ponte Vedra, FL
Uniting Extraordinary Homes w/ Extraordinary Lives
great graph Laura, I love the idea!  My poor market is all in the lava glowing RED section!  Ouch, my feet are burning!
Jul 13, 2007 12:16 AM #9
Rainmaker
81,326
Laura Warden Nordin
Century 21 Camco Realty - Albuquerque, NM
30-year Top Producer in Greater ABQ Real Estate
Commiserations, Janie! We're pretty lucky here that we still have some areas around Albuquerque that are in the "buyers' market blue" range, although not those pictured here!
Jul 13, 2007 10:38 AM #10
Rainmaker
833,510
The Trumm Team Omaha Homes for Sale, Real Estate
Keller Williams Greater Omaha - Omaha, NE
Laura, impressive graph. If you are interested I also calculate absorption rate by price range as well. Check out Absorption Rate by Price Range.

Troy Trumm

Dec 19, 2007 10:26 AM #11
Rainmaker
1,948,662
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker
Laura ..thanks for putting the effort into this post! Graphs are sometimes way way more powerful and memorable than line after line of copy!
Dec 20, 2007 11:38 AM #12
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Rainmaker
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Laura Warden Nordin

30-year Top Producer in Greater ABQ Real Estate
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