This is the first of regular reports I’ll be doing on the inventory of homes and land for sale in the Taos real estate market. What I don’t see in this market is a statistic common in many others, the number of months of supply. This number can be calculated in various ways, but I chose to do it this way:

• Take the average closings for the previous six months for a per month closing figure.
• Divide the current active listing inventory number by that average monthly closing figure.
• This gives the number of months to liquidate current inventory at current closing rates.

Taos real estate homes calculation:

• MLS shows 164 closings from Dec 14 though today, Jun 14
• That is an average closing number of 27.33 homes per month
• MLS shows 978 currently active home listings
• 978 / 27.33 = 35.78 months of inventory

Taos real estate land calculation:

• MLS shows 85 closings from Dec 14 through today, Jun 14
• That is 14.17 closings per month over the 6 month period
• MLS shows 1109 currently active land listings
• 1109 / 14.17 = 78.28 months of inventory

Some call this the Absorption Rate, and they calculate it weekly. Some leave the under-contract and Pending listings in as active…I do not. Basically, this is a simple look at how many properties are moving in relation to how many are trying to move. I also use six months back for an average, while many just go back a month or two. I think the longer period is more indicative of a true sales pace.

Track this number with me, and I’ll try to do it at least monthly. You can watch the market in several ways on this site. Check out my real estate statistics section for regular sold hotsheet reports as well.

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