Absorption rate is the percent of sales that are sold each month of the inventory. A higher percent means that inventory is moving at a faster rate, and thus is a Seller’s market. The total absorption rate for metro Phoenix is at 37% for the month of March, 2017.
Certain areas of the metro have higher performance of absorption rates, they are —
- South East Valley (Chandler-Mesa-Gilbert) 49.7%
- North West Valley (303 loop) 49.7%
- Apache Junction 49.6%
- Peoria and Glendale 47.0%
- Desert Ridge 44.0%
- South West Valley 44.0%
- Ahwatukee 38%
The luxury homes sector, $1 million and more, has the lowest absorption rate at 7% only.