Real Estate in Nanaimo - Absorption rates as of Sept. 1 2013
There has been a real upswing in Nanaimo real estate sales over the past four months. 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.
Based on sales data information I received from VIREB, 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. 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 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 August 2013 absorption rate is quite a bit lower than it was in August 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 August 2013 compared with August 2012
August 2013 – 22.10 weeks to sell the inventory that was currently on hand at the end of August.
August 2012 – 42.06 weeks to sell the inventory that was currently on hand at the end of August.
From the numbers above you will see that homes in August 2012 were selling at a much slower pace than they did in August 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 August 2012 than the same time this year.