Absorption Rates by Area

This article utilizes Absorption Rate, a key market indicator found in the Monthly Market Reports, to highlight existing single-family housing conditions in the Greater Albuquerque market areas. The data used for this Number Crunch article will be for single family, detached homes that are for sale now and for listings that were reported sold in the last year.

Definition of Terms:
Absorption Rate (AR) – The absorption rate measures how long it will take to exhaust the current housing inventory. An average market is traditionally a six-month supply. The rate is refered to as MSI, Monthly Supply of Inventory.

Ladera Heights - 5.68     Taylor Ranch - 7.87     Paradise Hills - 6.71

Ventana Ranch - 6.70     West River Valley 5.68

The absorption rate for detached homes, since May 2008, has stayed between 7.2 and 9.2. A balanced market is considered to have a 6.0 absorption rate.