It is such an active sellers market here in Nanaimo I thought it was time to calculate what the current absorption rate is for single family homes.
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
Using the latest real estate stats published by VIREB (Vancouver Island Real Estate Board) I can calculate the absorption rates for real estate here in Nanaimo.
By tracking these numbers monthly, it helps home buyers 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 on April 30, 2017 compared with April 30, 2016
April 30, 2017 – 8.63 weeks to sell the inventory that was currently on hand at the end of April
April 30, 2016 – 6.58 weeks to sell the inventory that was currently on hand at the end of April
From the numbers above you will see that homes in April 2017 were selling at a slightly slower rate than they were in April 2016. A rising figure indicates that the inventory is increasing marginally over the same time last year. In turn a falling absorption rate indicates that there are fewer homes coming on the market than there are buyers looking to buy.
The definition of a Seller’s Market according to the Real Estate Board of Greater Vancouver is:
A seller’s market has less than 4 months of inventory.
You will note from the absorption figures above that we have much less than 4 months of inventory indicating that we continue to be in a very strong sellers market
For additional information on absorption rates and other stats on the state of the Nanaimo real estate market please give me a call.