Rate of Absorption is one method of analyzing the real estate market, and estimates how long it will take to sell the current inventory of homes on the market based on the rate of recent sales. All this is, is the number of homes on the market divided by the number of homes recently sold over a given period of time. This can be calculated for a particular area, neighborhood, price range, or any other parameters. Following is the Rate of Absorption in various areas and price ranges in the Pinetop-Lakeside and Show Low areas, and remember this only includes homes currently on the market and does not take into account any future listings. These numbers are calculated based on sales over the last 12 months.
Pinetop Country Club: 3.4 years of inventory
Pinetop (not including the CC): 2.9 years of inventory
Lakeside & Wagon Wheel: 2.3 years of inventory
Show Low (not including Torreon): 2.4 years of invemtory
Torreon: 2.9 years of inventory
All of Pinetop-Lakeside and Show Low Area by Price Range
Under $200,000: 1.8 years of inventory
$200,000 to $300,000: 2.5 years of inventory
$300,000 to $400,000: 4.9 years of inventory
$400,000 to $500,000: 4.1 years of inventory
Over $500,000: 4.0 years of inventory
These numbers are extremely high, especially for home priced $300,000 and above. The Pinetop Country Club is high due to the large percentage of high priced homes in that area, and Torreon would be higher but there were several foreclosed homes that sold in Torreon, which helped keep the number down.