I was reviewing the real estate sales, in Nanaimo, for June 2015. Based on the number of sales that occurred compared to the number of active listings, I thought it would be interesting to see how absorption rates have changed since January 2015.
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.
The absorption rate of single family homes in Nanaimo in June 2015 compared with January 2015
January 2015 – 11.14 weeks or 2.78 months to sell the inventory that was currently on hand at the end of January
June 2015 – 12.59 weeks or 3.14 months to sell the inventory that was currently on hand at the end of June
What does this tell us?
If market conditions do not change and if no new listings come on the market it will take 3.14 months for the current inventory to sell at the current pace of the market. A balanced market’s absorption rate is typically between 5 – 7 months.
The number of 2.78 months indicates that we were experiencing a Seller’s Market in January 2015. The number of 3.14 months indicates that the Nanaimo real estate market is still an active sellers’ market as of July 1 2015