Steamboat Springs Real Estate Market Continues to Improve
Absorption rate is a key barometer to determine the health of a Real Estate Market.
Absorption rate is defined as: how many months it would take to sell all the homes for sale in my area at the current rate they are selling.
In a healthy real estate market, a normal absorption rate is around 5-7 months of inventory. So if there were 70 homes for sale and on the average, 10 homes sold per month, the absorption rate would be 7.
In Steamboat Springs, the absorption rate for Single Family homes priced under a million continues to improve.
Steamboat Springs has three main areas within the city limits and these are the areas showing signs of improvement. Here’s the absorption rate for each key area within Steamboat Springs:
– Downtown or Old Town area = 3.5 months
– Fish Creek Falls area = 3 months
– The Mountain area = 5.4 months
If you are new to this concept, this means if our current number of homes on the market stays the same, it will take approximately 3 to 5 months to sell your home if it is in these areas and priced under $1,000,000.
If you want to learn more about any of these areas, click on the link below.
I like the direction we’re headed in Steamboat Springs. The real estate market is coming back and prices are on the rise. If you have any specific questions, please don’t hesitate to give me a call.