According to Intermountain MLS data, 47 Eagle, Idaho homes closed escrow during September 2006 with an average selling price of $415,764.

This compares to 88 homes closed during September 2005 with an average selling price of $418,899,  indicating a stunning 46.6% year-over-year decline in closed units.

The average selling price for a home in Eagle during September 2006 was $415,764 ~ a little less than 1% below the year-earlier number.

Here’s the interesting part:

We now have 167 homes for sale in Eagle, Idaho that are priced above $700,000, with an average asking price of $1,071,601.

88 comparable homes have closed in the past 12 months, which works out to an absorption rate of about 7.3 homes/month in the $700,000+ price range.

Dividing the listing inventory by the absorption rate tells us that we have 23 months’ worth of listings above $700,000 (if no more homes are listed).

(data is for single-family homes on lots or acreage).