Real Estate in Nanaimo - Absorption rates as of December 31 2013
The upswing in the Nanaimo real estate market continues.
The real estate market in Nanaimo is balanced and continues to lean toward 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.
Based on sales data information I received from VIREB, I have calculated the absorption rates for real estate here in Nanaimo, as of Dec. 31 2013.
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. Absorption rate is NOT an exact science. Absorption rates should be calculated monthly for the purpose of determining a trend in the marketplace.
The December 2013 absorption rate is a bit lower than it was in December 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 December 2013 compared with December 2012
December 2013 – 24.25 weeks to sell the inventory that was currently on hand at the end of December.
December 2012 – 25.76 weeks to sell the inventory that was currently on hand at the end of December.
From the numbers above you will see that homes in December 2012 were selling at a slower pace than they did in December this year. A declining number of weeks of inventory indicate 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 December 2012 as compared to Dec. 2013.