Real Estate in Nanaimo - Absorption rates for July 2012
“How’s the market in Nanaimo?” This is the number one question I am asked as a Nanaimo Realtor. The best way to understand how the local real estate market is doing is to calculate the absorption rates.
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.
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 July 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 July 2012 absorption rate is lower than it was in July 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 July 2012 was 25.85 weeks
These numbers indicate that we are just on the cusp of a balanced market but still appear to be in a buyer’s 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 25.85 weeks indicates that the Nanaimo real estate market is still 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.
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