Tucson Real Estate Absorption Rates June 2007
July 18, 2007
Post Tags: Tucson-Absorption-Rates , tucson-real-estate-market-up , Tucson-Real-Estate-Trends
Absorption Rates for May and June 2007
Tucson Real Estate Market
|
Area |
June Listed |
June |
June |
May Listed |
May |
May |
Sold YTD |
| N | 678 | 128 | 5.29 | 820 | 115 | 7.13 | 642 |
| NE | 406 | 59 | 6.88 | 462 | 66 | 7.00 | 363 |
| NW | 2343 | 310 | 7.55 | 2617 | 323 | 8.10 | 1779 |
| XNW | 104 | 15 | 6.93 | 113 | 13 | 8.69 | 88 |
| C | 1145 | 202 | 5.66 | 1349 | 220 | 6.13 | 1156 |
| E | 476 | 107 | 4.44 | 553 | 97 | 5.70 | 521 |
| S | 491 | 73 | 6.72 | 561 | 111 | 5.05 | 521 |
| SE | 772 | 116 | 6.65 | 890 | 134 | 6.64 | 697 |
| SW | 704 | 46 | 15.30 | 736 | 67 | 10.98 | 399 |
| XSW | 309 | 28 | 11.03 | 315 | 23 | 13.69 | 178 |
| XS | 664 | 70 | 9.48 | 695 | 74 | 9.39 | 402 |
| W | 503 | 63 | 7.98 | 533 | 59 | 9.03 | 375 |
| XW | 63 | 8 | 7.87 | 69 | 11 | 6.27 | 50 |
| 8,665 | 1,226 | 7.07 | 9,721 | 1313 | 7.40 |
This is just the third month we have been reporting absorption rates for the Tucson Real Estate Market. Here once again is how they are figured.
Absorption rates are calculated by taking the number of Active Listings on the market in a given area. Dividing it by the number of homes sold in that area to determine the number of month it would take to sell existing inventory at this rate.
Example:
- 100 Active Listings
- 10 Homes Sold
- 10.00 months inventory
By reporting absorption rates it take into account two important factors that aren’t accounted for in other methods such as Days on Market, or Year over Year reporting of the number of listings, or total units sold. The two factor are:
- More homes are being built all the time.
- More people are moving into the community all the time.
XS, SW, S, SE, XW, XSW decreased absorption
The biggest change was in the where the month increased from 10.98 to 15.30 almost a 5 month increase in that area. The others were less significant to almost no change at all.
N, NE, NW, XNW, C, E, W Increase in absorption
The biggest movement came from the North were the months of inventory went from 7.13 to 5.29. This puts the North along with the East at 4.44 months inventory pretty much at a normal market level. Buyers in these areas should pay attention to these absorption rates as should sellers. These two areas of Tucson do not have an abundance of inventory.
Next months absorption rates should show even more improvement based on the high number of pending contracts reported in the month of June. There were 1191 pending contracts going into June coupled with the smaller number of active listings which helped some of these area to improve. In June there were 2053 pending contracts 862 more than than May. Unless there is a sudden increase in the number of new listings we should see absorption rates higher than this and even more areas of the city dropping to normal levels of inventory.
Overall there was almost no change in the absorption rate for the Tucson area as a whole due to some areas having rather large increases and most remaining almost level.
It was a good month for the Tucson Real Estate Market in June.
