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Santa Fe Real Estate Sales Show Improving Absorption Rates

Santa Fe, New Mexico -Residential Sales show Improvement in Absorption Rates

 Having just completed the first month of 2012, it is encouraging to see that residential absorption rates have continued to improve across all price ranges.  This means that it takes fewer months for a home to sell (provided it is priced properly, etc.), compared the past several years.  At its worst, the absorption rate for all price ranges was at 23.47 months in June of 2009.   At the end of January 2012, this rate had dropped to 12.37 months.     

As always, however, it is crucial to parse data for a clearer picture as the absorption rates vary widely depending on price range.  The best news is with homes priced under $500,000.  This absorption rate has fallen from a high of 17.48 months in June 2009 to 10.22 months at the end of January.  The rate for homes priced over a million dollars has improved; however, there is still a significant time headwind.  At the peak in September of 2009, the absorption rate for home over $1,000,000 was 57.85 months.  Now it is down to 27.49 months. 

Since the number of sales has not increased significantly, the reduction of the number of homes for sale indicated properties are being sold and fewer people are putting their homes on the market.  We do expect inventory to increase over the next few months as spring, summer, and fall are our best selling seasons. Yet, as inventory rises and sales rise seasonally, we do not expect a huge change in absorption rates in the short run.

 I hope this information is helpful.  Just let me know if you would like more in-depth detail!

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