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Jonathan Dalton
REALTOR
ePro, SFR
602-502-9693

Phoenix Real Estate Absorption Rate (Tabular): January 1 2008

Phoenix Real Estate Absorption Rate (Tabular): January 1 2008

avatar.jpgHere is this week’s Phoenix real estate inventory and absorption rate update in tabular form.

Standard disclaimers apply – what you see is data for single-family detached homes in Maricopa County (as the total) as well as Queen Creek and Maricopa (not included in the grand total at the bottom.) All data is provided by the Arizona Regional MLS and is deemed reliable but not guaranteed.

CITY SOLD 12/1//07 – 1/1//08

ACTIVE 1/1

Absorption Rate

as of 1/1/08

Change Buyer/Seller
Ahwatukee 7 61 8.71 -1.14 Buyer
Anthem 34 565 16.62 -0.47 Buyer
Avondale 68 1,001 14.72 -2.82 Buyer
Buckeye 57 987 17.32 -3.66 Buyer
Carefree 2 126 63.33 -1.00 Buyer
Cave Creek 22 500 22.73 0.89 Buyer
Chandler 213 2,069 9.71 -0.26 Buyer
Desert Hills 2 167 83.50 -88.50 Buyer
El Mirage 15 415 27.67 7.94 Buyer
Fountain Hills 20 449 22.45 2.74 Buyer
Gilbert 206 2,299 11.16 0.29 Buyer
Glendale 143 2,087 14.59 -1.09 Buyer
Goodyear 62 1,124 18.13 2.02 Buyer
Laveen 46 439 9.54 -1.07 Buyer
Litchfield Park 18 458 25.44 7.41 Buyer
Maricopa 77 929 12.06 -1.78 Buyer
Mesa 260 3,228 12.42 -0.88 Buyer
Paradise Valley 15 336 22.40 0.34 Buyer
Peoria 103 1,737 16.86 0.96 Buyer
Phoenix 507 9,087 17.92 0.50 Buyer
Queen Creek 166 1,910 11.51 -3.13 Buyer
Scottsdale 197 3,750 19.04 -0.53 Buyer
Sun City 59 622 10.54 -0.44 Buyer
Sun City West 44 550 12.50 0.89 Buyer
Surprise 166 2,038 12.28 -0.63 Buyer
Tempe 48 472 9.83 -0.39 Buyer
Tolleson 41 436 10.63 -3.55 Buyer
Waddell 9 130 14.44 -17.31 Buyer
TOTAL 2,432 36,810 15.14 -0.16 Buyer

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No Comments

  • Frank says:

    Would you explain the absorption rate and how it is calculated for non real estate folks like me.

  • Sure thing, Frank …

    Take the number of active listings and divide by the number of sales over a given time period (usually a month) and that’s the absorption rate – the number of months it would take to sell the homes on the market assuming no new homes are added to the mix.

    Take Glendale … there were 143 homes sold over the past 30 days and there are just over 2,000 homes for sale. Divide the inventory by the homes sold and you get the 14.59. So at the current sales pace it will take 14.5 months to clear out all the homes currently on the market.

    Make sense?

  • Frank says:

    Yes, it makes sense, thanks for the quick reply. The only issue I see with the calculation is sales differ from month to month depending on the time of the year. To get more accurate rate, several months of sales need to be included to get a much closer measure of absorption rate. But thanks for simplifying the calculation to make it clear.

  • I absolutely agree. I’ve been tracking it for the last 18 months and watching the trend really is where it’s at.

    I’ve been toying with the idea of posting charts for 2007 showing absorption rates for the different cities but just haven’t had a chance to sit down and play with the Excel data.

  • adam says:

    Where do you access your data set? is there a public data set i can get from Arizona Regional MLS, if so how?

  • ARMLS has a limited data set available on its public site: http://www.armls.com/stats.html

    It won’t allow you to duplicate what I do here because it’s ARMLS-wide undivided. But it does allow you to get a feel for sales trends.

    For me, I go into ARMLS and pull the data manually. I’d use Wyldfyre but the limits on properties it can pull get in the way.

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