Real Estate in Nanaimo - Absorption rates for October 2014

Real Estate in Nanaimo - Absorption rates for October 2014 

The latest real estate stats from the Vancouver Island Real Estate Board, were released today for October 2014.  I spent some time with my calculator calculating the real estate in Nanaimo absorption rates as of the end of October 2014.  

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. 

I thought it would be interesting to calculate the absorption rate to see how it compares to this time last year.

The absorption rate of single family homes in Nanaimo in October 2014 compared with October 2013

October 2014 – 27 weeks or 6.75 months to sell the inventory that was currently on hand at the end of October.  

October 2013 – 22.61 weeks or 5.65 months to sell the inventory that was currently on hand at the end of October

What does this tell us?

If market conditions do not change and if no new listings come on the market it will take 6.75 months for the current inventory to sell at the current pace of the market.  A balanced market’s absorption rate is typically between 5 – 7 months.

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