Which Market Segment Is Selling Best?
Hello from Breckenridge, Colorado!
We know it’s a buyer’s market, but which market segment is selling the best: homes, condos, or land?
Get the quick answer from our 1-minute video, or see the details below.
The short answer is: condos are selling best, followed closely by single family homes. Land is a distant third. So, it’s a great time to buy vacant land in Breckenridge!
How many months (or years) supply do we have?
- As of 11/15/11, we have a 15-month supply of homes; 14.5 months of condos, and 44 months of vacant land!
- The chart below shows the number of months’ supply of homes, condos, and land in the Breckenridge area, going back to March of 2003.
- To calculate the monthly supply: it’s the ratio between the number for sale, vs the number that have sold. This is also called the absorption rate — the rate at which properties are being absorbed (bought and sold) by the market.
- As an example, on 11/15/11 there were 249 homes listed for sale in Breckenridge. In the preceding 52 weeks, 200 homes sold. 249 actives / 200 solds = 1.25 year’s supply of homes. This means that if no more homes come on the market, at the rate the homes are selling, it would take 1.25 years for them all to sell. Converted to months, 1.25 * 12 = a 15 month supply of homes, as of 11/15/11. We’ve been tracking that calculation going all the way back to 2003. That’s the data you see in the blue line.
- The light purple line shows the monthly supply of condos
- The magenta line shows the monthly supply of vacant land
- Note that the monthly supply has changed dramatically over the years. As an example, 5 years ago in mid-November 2006, there was a 5.5 month supply of homes (vs 15 months now); a 2.3 month supply of condos (vs 14.5 months now) and a 6.2 month supply of land (vs 44 months now)!
What a great time to buy, in one of the most affordable ski resort towns in the U.S.!