Highlands Ranch and Lone Tree the Friendliest Neighborhoods for Sellers
Third quarter real estate statistics show that Highlands Ranch and Lone Tree are averaging a lower absorption rate in comparison to other featured areas, which can translate into quicker home sales. 
Considering Absorption Rate is one way to measure the health of our real estate market. Absorption Rate designates the number of months of housing supply on hand. The larger the supply, the more competition there is for sellers and the higher likelihood that prices will drop or concessions will be offered. Second quarter statistics showed seven areas that were considered sellers’ markets. The quarter, we only have three. The market has definitely slowed.
More Months of Supply = Buyer’s Market = Possible Reduced Pricing and/or Concessions
Fewer Months of Supply = Seller’s Market = Possible Price Increases and/or Bidding Wars
The commonly accepted separation between markets is:
|
Area |
July AR |
Aug AR |
Sept AR |
Avg. AR |
Market Condition |
| Aurora North | 6.76 | 6.64 | 7.51 | 6.97 | Neutral |
| Aurora South | 5.93 | 6.09 | 6.68 | 6.23 | Neutral |
| Broomfield | 8.28 | 7.50 | 9.96 | 8.58 | Buyers |
| Douglas Cnty West | 6.98 | 7.08 | 9.51 | 7.86 | Buyers |
| Douglas/Elbert/Parker | 6.40 | 5.96 | 8.02 | 6.79 | Neutral |
| Highland Ranch/Lone Tree | 2.23 | 2.79 | 4.32 | 3.11 | Sellers |
| Denver Northeast | 5.82 | 6.66 | 8.65 | 7.04 | Buyers |
| Denver Northwest | 4.78 | 4.99 | 6.25 | 5.34 | Neutral |
| Denver Southeast | 5.63 | 5.43 | 8.14 | 6.40 | Neutral |
| Denver Southwest | 5.98 | 6.24 | 7.60 | 6.61 | Neutral |
| Jeffco Central | 4.38 | 6.89 | 7.89 | 6.39 | Neutral |
| Jeffco North | 3.70 | 4.86 | 6.06 | 4.87 | Sellers |
| Jeffco South | 4.50 | 4.11 | 6.62 | 5.08 | Neutral |
| Jeffco West/Golden | 5.35 | 5.27 | 10.27 | 6.96 | Neutral |
| Jeffco North Central | 5.28 | 4.57 | 6.91 | 5.57 | Neutral |
| Jeffco South Central | 4.20 | 4.74 | 4.82 | 4.59 | Sellers |
Buyers or Sellers Market? Absorption Rate is the Key
Jennifer, I am amazed that it is not a Buyer’s market in more areas. The national news would certainly have you think so. It just goes to show that all real estate is local.
Joanne, It is amazing how much things differ in the same general area. Broomfield has over eight months of supply and sellers in Highlands Ranch and Lone Tree are only competing with three months worth of supply. I think we are all used to selling our homes in a month or two, but the average for a buyer’s market is over seven months of supply. I think we’ve been spoiled in the past. Hopefully we’ll move more towards a seller’s market next spring.