Real Estate in Nanaimo - Absorption rates for January 2013
Real Estate in Nanaimo - Absorption rates for January 2013
“How’s the market in Nanaimo?”, as a Realtor in Nanaimo this is the number one question I am asked .
The best way to understand how the local real estate market is doing is to calculate the absorption rates.
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.
My numbers come 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 as of the end of January 2013.
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 January 2013 absorption rate is higher than it was in January 2012. In other words it is taking more time to absorb (or sale) the entire inventory currently on the market.
The absorption rate of single family homes in Nanaimo in January 2013 was 32.93 weeks
An absorption rate of 32.93 weeks indicates that the Nanaimo real estate market is still experiencing a Buyer’s market. As it stands now we have over 8.23 months of inventory on the market.
Absorption rates should be calculated monthly in order to get an accurate reading of the current market. It is quite possible that once the spring market starts these numbers could change dramatically, whereby we could be experiencing a balanced market.
The definition of a Buyer’s market is:
A situation in which supply exceeds demand, giving purchasers an advantage over sellers in price negotiations.
The definition of a Balanced Market according to Realtor Magazine is:
A balance market has 5-6 months of inventory. Eg: If 100 houses sell a month, there should be 500-600 houses in active inventory.
For additional information on absorption rates and other stats on the state of the Nanaimo real estate marketplease give me a call.
Every Nanaimo buyer, seller, property, and neighbourhood has its own details. Ask Lumen for a quick next-step answer, check the latest market stats, or send your question to The Dan Morris Real Estate Team for personal guidance.