It’s been a while since I have calculated the absorption rates for sales here in Nanaimo. There appears to be a slight softening in the market so it makes sense to pull out the sales stats and see what is actually happening in the Nanaimo real estate market.
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 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 and Sellers better understand 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 absorption rate of single family homes in Nanaimo on May 31, 2018 compared with May 31, 2017
May 31, 2018 – 11.16 weeks to sell the inventory that was currently on hand at the end of May
May 31, 2017 – 7.31 weeks to sell the inventory that was currently on hand at the end of May
From the numbers above you will see that homes in May 2017 were selling at a faster rate than they were in May 2018. A rising figure indicates that the inventory is increasing over the same time last year. It appears that the market is still a Sellers Market but may be shifting toward a more balanced market.
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.
For additional information on absorption rates and other stats on the state of the Nanaimo real estate market please give me a call.