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Absorption Rates in
Colorado Springs as of 3-31-08 |
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The Definition of Absorption Rate:
Number of months it takes to sell the current inventory at the present rate of sales.
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Area of Town |
3 month Absorption Rate |
6 month Absorption Rate |
12 month Absorption Rate |
| East | 5.2 | 6.5 | 6.8 |
| Powers | 5.7 | 7.1 | 7.2 |
| Central | 6.3 | 7.2 | 7.6 |
| Northeast | 5.6 | 7.1 | 7.7 |
| Fountain | 6.4 | 7.7 | 7.8 |
| Northwest | 5.9 | 8.8 | 8.6 |
| Briargate | 5.7 | 8.0 | 9.1 |
| Southeast | 6.4 | 7.9 | 9.2 |
| OCC | 8.1 | 10.2 | 9.5 |
| West | 7.2 | 9.8 | 10.3 |
| Southwest | 7.3 | 10.7 | 11.7 |
| Blackforest | 10.1 | 11.9 | 12.4 |
| Manitou Springs | 11.2 | 13.3 | 16.4 |
| Northgate | 11.2 | 13.7 | 16.4 |
| Tri-Lakes | 10.8 | 15.9 | 19.5 |
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Competition in the market place affects the sales price of a home. If the demand
is constant and the supply is low, the price can increase. On the other hand, if the demand is declining and the supply is constant or increasing, the price will go down. |
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Five to six months of market time is considered to support a healthy inventory of
property. If the market time is less than that, the shortage of property can cause the price to go up. If it is more than that, the overage of properties can cause the price to go down. |
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