Absorption Rate – Fountain Hills AZ Real Estate

I’m sure by now you have heard in the news that the Phoenix Metro Real Estate market is on fire and homes are selling like hotcakes!  This is true, but every community is different and how much prices are increasing depends on your location, price range, and condition of your home.

As a real estate professional, it is important for me to know the market trends and what the current time frame a Fountain Hills home as an average stays on the market. Absorption Rate is what we use to determine  a market’s supply and demand. It’s basically the current inventory of homes (supply) divided by recent sales history (demand) to calculate the market’s current sales rate. It is used to determine how long the supply of homes will take to sell. It also determines whether it is a sellers market or a buyers market.

What are the calculations? I use a 12 month look-back to calculate the average monthly rate that homes are being sold You can also use this formula to get the monthly results.

1. Find the number of homes closed in your market over a 12 month period which is 823

2. Divide the number of homes by the number of months in the period ( 12 months). 823 /12 = 6.85 

3. Divide 6.85  into the number of current active listings (include pending, AWC  because they aren’t sold yet) 355/6.85 

Fountain Hills Absorption rate is approximately 5.1 months. This is the amount of time it will take to sell the current inventory.

Buyer’s Market: Over 6 months of supply
Balanced Market: 6 months of supply
Seller’s Market: Less than 6 months of supply

It all comes down to a  matter of supply and demand. It is now a sellers market in Fountain Hills and has been for some time. Homes are selling quickly,but it still means it must be priced right. Buyers are finding themselves in multiple offer situations. If you are thinking about selling this may be a good time.

See Interactive charts on current Fountain Hills market trends

Do you have questions regarding your Fountain Hills real estate? Do you want to know the value of your home?

I would love to talk with you! For a quick response, you can contact me at 480 888 6708 or email me. I’ll get back to you ASAP!








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