Tucson Real Estate Absorption Rates May 2007
June 17, 2007
Absorption Rates for April and May 2007
Tucson Real Estate Market
|
Area |
May Listed |
May |
May |
Apr Listed |
Apr |
Apr |
Sold YTD |
| N | 820 | 115 | 7.13 | 851 | 103 | 8.26 | 502 |
| NE | 462 | 66 | 7.00 | 471 | 61 | 7.72 | 302 |
| NW | 2617 | 323 | 8.10 | 2668 | 316 | 8.44 | 1457 |
| XNW | 113 | 13 | 8.69 | 111 | 15 | 7.40 | 72 |
| C | 1349 | 220 | 6.13 | 1325 | 205 | 6.46 | 937 |
| E | 553 | 97 | 5.70 | 560 | 71 | 7.89 | 411 |
| S | 561 | 111 | 5.05 | 557 | 107 | 5.21 | 437 |
| SE | 890 | 134 | 6.64 | 881 | 108 | 8.16 | 569 |
| SW | 736 | 67 | 10.98 | 731 | 63 | 11.60 | 345 |
| XSW | 315 | 23 | 13.69 | 319 | 38 | 8.39 | 149 |
| XS | 695 | 74 | 9.39 | 686 | 69 | 9.94 | 322 |
| W | 533 | 59 | 9.03 | 482 | 63 | 7.65 | 308 |
| XW | 69 | 11 | 6.27 | 75 | 8 | 9.38 | 42 |
| 9,721 | 1313 | 7.40 | 9,717 | 1227 | 8.07 |
Absorption rates are something we just started reporting. It is 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, W, XNW decreased absorption
It is interesting to note that the three areas where the absorption rate increased are adjacent to each other the XS, XSW, W. Throwing in the XNW into this category as well; these areas saw an increase in the number of months.
All other areas increased absorption
All the rest of the areas saw a decrease in the number of months to absorb the inventory with the E and SE seeing the greatest drop in months.
Over All
The market seems to have made some gains this month with an overall absorption rate of 7.40 months compared to 8.07 last month. This is consistent with the increase of sales activity in the market.
