Real Estate in Nanaimo - Absorption rates
One of my jobs as a Realtor is to be aware of trends in real estate in Nanaimo. Tracking absorption rates on a month-to-month basis helps me understand the real estate market in Nanaimo and where it is headed.
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 do enjoy math I have to admit.
Every month VIREB (Vancouver Island Real Estate Board) supplies members with statistics on the past months activity in real estate in Nanaimo.
The absorption rate of single family homes in Nanaimo in Feb.2011 in comparison to Feb. 2010:
Feb.2010- 25.94 weeks to sell the amount of inventory that was on hand at that time
Feb. 2011 - 22.57 weeks to sell the inventory that was currently on hand at the end of Feb.
From the numbers above you will see that homes in Feb. 2011 were selling faster than they were at the same time the year before. 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.
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.
For additional information on absorption rates and other stats on the state of the Nanaimo real estate market please give me a call.
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