Real Estate in Nanaimo - Absorption rates for February 2012
Real Estate in Nanaimo - Absorption rates for February 2012
One of the key indicators on how the Nanaimo real estate market is doing is the absorption rate.
My numbers came 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.
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 February 2012 absorption rate is lower than it was in December 2011. In other words it is taking less time to absorb (or sale) the entire inventory currently on the market.
The absorption rate of single family homes in Nanaimo in February 2012 compared with December 2011
February 2012 – 21.76 weeks to sell the inventory that was currently on hand at the end of February.
Down considerably from:
December 2011 – 31.55 weeks to sell the inventory that was currently on hand at the end of December
From the numbers above you will see that homes in December 2011 were selling at a slower pace than they were in February. 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 have moved into a more balanced market. 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 market please 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.