Absorption rate is an estimate of how long it would take all the houses currently on the market to sell, if no new ones were added, based on how many sold in recent months. It’s an artificial number, of course, but a good indicator of market trends. I think it's one of the most useful statistics we can be aware of.
I believe absorption rate is more valid than ‘days on market’, because DOM is quite skewed by short sales, which stay on the market considerably longer.
Broomfield doesn't have as many homes available in the lower-end price spectrum as other nearby towns. Many were snapped up during the tax credits, but Broomfield also has a lot more new construction than cities like Arvada.
The recent home buyer tax credits did heat up the first time homebuyer's, but didn't seem to have a lot of impact on people selling a home and buying another. Now that those have expired, some people are forecasting doom and gloom for the real estate market.
However, the local economy is doing pretty well, with new jobs moving into the area. So although I don't expect a quick recovery, I do see an improving market down the line.
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I write posts on real estate issues and local events in the Denver metro area, especially those *communities between Denver and Boulder, as a public service. My hope is to give people an idea of the 'flavor' of our community, in case they're new or moving to the Denver area.
I am a residential real estate agent, happily helping folks buy a house or sell a house in the beautiful and friendly *suburbs northwest of Denver.
*Arvada, Broomfield, Lafayette, Louisville, Superior, Westminster; also Thornton, Golden, Wheat Ridge, Northglen, Lakewood
Read more about Arvada Colorado, a historic small town between Denver and Boulder.
Find Homes for Sale, no Matter Who Listed Them, at Dream House Hunting.
Copyright © 2011 Joetta Fort
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