I have been reviewing the Nanaimo real estate statistics for October 2011. I spent some time with my calculator calculating the real estate in Nanaimo absorption rates as of the end of October 2011. 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. This information 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.
Happily, it appears that the increased market activity we experienced over the past two months continued in October..
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 2011 compared with October 2010
October 2011 – 25.95 weeks to sell the inventory that was currently on hand at the end of October.
October 2010 – 34.91 weeks to sell the inventory that was currently on hand at the end of October
From the numbers above you will see that homes in October 2011 were selling at a considerably faster pace 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. The numbers above would indicate that we are experiencing a busier market than the same time last year for sure!
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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