Real Estate in Nanaimo - Absorption rates for June 2013
There have been some real market changes in Nanaimo real estate over the second quarter of 2013. We are most definitely experiencing a sellers’ market. A sellers’ market is a real estate market where there is a low inventory of homes for sale in relation to the number of buyers that are shopping for homes.
I spent some time with my calculator calculating the real estate in Nanaimo absorption rates as of the end of June 2013. My numbers came from the latest real estate stats published by VIREB (Vancouver Island Real Estate Board). Based on the information they have supplied I have calculated the absorption rates for real estate here in Nanaimo. This information helps me understand the real estate market in Nanaimo and where it is headed.
The definition of absorption rates is the number of weeks it takes to sell the current real estate inventory in Nanaimo at the present rate of sales.
By tracking these numbers monthly it helps me understand better what type of real estate market Nanaimo is experiencing. In addition these absorption rates assist me in advising my clients on realistic expectations on the length of time it will take to sell their home.
The June 2013 absorption rate is quite a bit lower than it was in June 2012. In other words it is taking less time to absorb (or sale) the entire inventory currently on the market.
Below you will find a comparison between absorption rates this year versus last year.
The absorption rate of single family homes in Nanaimo in June 2013 compared with June 2012
June 2013 – 22.61 weeks to sell the inventory that was currently on hand at the end of June.
June 2012 – 32.10 weeks to sell the inventory that was currently on hand at the end of June.
From the numbers above you will see that homes in June 2012 were selling at a much slower pace than they did in June this year. A declining number of weeks of inventory indicates that the sales of homes are brisker. In turn a rising absorption rate indicates that there are more homes coming on the market than there are buyers looking to buy. The numbers above would indicate that we experienced a slower market in June 2012 than the same time this year.
For additional information on absorption rates and other stats on the state of the Nanaimo real estate market please give me a call.