Real Estate in Nanaimo - Absorption rates for May 2012

Real Estate in Nanaimo - Absorption rates for May 2012

Real estate absorption rates are one of the key indicators on how the Nanaimo real estate market is doing.

My numbers come 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 as of the end of May 2012.

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 May 2012 absorption rate is slightly higher than it was in May 2011.  In other words it is taking more time to absorb (or sale) the entire inventory currently on the market.

The absorption rate of single family homes in Nanaimo in May 2012 was 27.35 weeks

Earlier this spring the Nanaimo real estate market was considered to be experiencing a 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.

An absorption rate of 27.35 weeks indicates that the Nanaimo real estate market is again experiencing a Buyer’s market.

The definition of a Buyer’s market is:

A situation in which supply exceeds demand, giving purchasers an advantage over sellers in price negotiations.

For additional information on absorption rates and other stats on the state of the Nanaimo real estate market please give me a call.