If you are looking to buy a home in the Grand Junction area, you have noticed that new listings disappear quickly and there are many buyers looking at the same homes you are. Grand Junction is currently a Seller’s market and we have a shortage of available homes. Here is the quick explanation about Grand Junction Homes Market “Absorption Rate” and how it affects home buyers and sellers.
What is the ‘Absorption Rate’
The absorption rate is the rate at which available homes are sold in a specific real estate market during a given time period. It is calculated by dividing the total number of available homes by the average number of sales per month. The figure shows how many months it will take to exhaust the supply of homes on the market. Currently the Grand Junction Homes Market Absorption rate is averaging 2-4 months.
- 1-4 months – Sellers Market. More buyers than sellers, with properties often selling quickly for more than asking price.
- 5-6 months – Normal Market. Similar number of both buyers and sellers. Properties sell for, or close to asking price.
- 7+ months – Buyers Market. More sellers than buyers, with homes taking longer to sell, and often selling for much less than asking price, if at all.
| Single Family Residential Absorption Rate Mesa County (based on previous 12 months) | ||||||
| 5/1/16 – 5/1/17 | ||||||
| 5/1/2017 | Price Range | Sold Listings | Active Listings | Months of Inventory | ||
| 0 – 100k | 73 | 16 | 2.6 | |||
| 101k – 200k | 1050 | 277 | 3.2 | |||
| 201k – 300k | 1093 | 402 | 4.4 | |||
| 301k – 400k | 343 | 161 | 5.6 | |||
| 401k – 500k | 180 | 90 | 6.0 | |||
| 501k – 700k | 86 | 93 | 13.0 | |||
| 701k – 1 million | 19 | 44 | 27.8 | |||
| 1 million – up | 8 | 24 | 36.0 | |||
| Single Family Residential Absorption Rate Mesa County (based on previous 6 months) | ||||||
| 11/1/16 – 5/1/17 | ||||||
| 5/1/2017 | Price Range | Sold Listings | Active Listings | Months of Inventory | ||
| 0 – 100k | 40 | 16 | 2.4 | |||
| 101k – 200k | 449 | 277 | 3.7 | |||
| 201k – 300k | 501 | 402 | 4.8 | |||
| 301k – 400k | 146 | 161 | 6.6 | |||
| 401k – 500k | 70 | 90 | 7.7 | |||
| 501k – 700k | 33 | 93 | 16.9 | |||
| 701k – 1 million | 9 | 44 | 29.3 | |||
| 1 million – up | 2 | 24 | 72.0 | |||
If you are looking to buy or sell a home in the Grand Valley area, call Sandra for a personal consultation, (970) 261-1686
