Absorption rates for September 2015
Absorption rate is one of the key indicators on how the Nanaimo real estate market is faring. It tells us the rate at which properties are selling.
I’ve reviewed the latest real estate stats published by VIREB (Vancouver Island Real Estate Board). Using the information they have supplied I can calculate the absorption rates for real estate here in Nanaimo.
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 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 September 2015 compared with September 2014
September 2015 – 17.45 weeks to sell the inventory that was currently on hand at the end of September
September 2014 – 17.88 weeks to sell the inventory that was currently on hand at the end of September.
From the numbers above you will see that homes in September 2015 were selling at a slightly faster rate than they were in September 2014. A declining figure indicates that the inventory is decreasing as more homes are being sold than are coming onto the market. 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 seem to be experiencing a balanced market leaning toward a seller’s market.
The definition of a Balanced Market according to the Real Estate Board of Greater Vancouver is:
A balance market has 4-6 months of inventory. eg: If 100 houses sell a month, there should be 400-600 houses in active inventory.
For additional information on absorption rates and other stats on the state of the Nanaimo real estate market please give me a call.