The report below is broken up into two sections, ranch style homes and two story homes, and you will see all of the homes that sold and closed in 2016. I do this since ranch style and two story homes are two completely different markets here in The Timbers at the Pinery. Ranch style homes have grown in popularity since baby boomers have learned to appreciate how convenient it is to have all of your living space on one floor. Ranch style homes are not just for retirees or grandparents. Each year I’m moving more and more couples just starting out into ranch style homes.
Two story homes are still the main driver of the market. There are twice as many two story homes sold each year but the ranch style main floor living market is definitly making headway.
The current absorption rate for two story homes is 7.74 months. Basically there is 8 months of inventory on the market right now in The Timbers for two story homes.
For ranch style homes there is currently 4.5 months of inventory on the market.
What is absorption rate? The absorption rate for The Timbers is calculated by how many homes sold over a 12 month period and compared to the number of active homes currently on the market. If the market stayed the same going forward it would be an accurate indicator of how long it would take to sell all the current home on the market in The Timbers. Markets are ever changing so absorption rates are to be used only as a guide of what could happen. I personally do not put a lot of emphasis on absorption rates in a fast moving market like we currently have in Colorado.
Look at this…Two story average sale price was down 9.6% from $927.077 in 2015 to $841,365 in 2016.
The current absorption rate for two story homes is 7.74 months.