Whistler Real Estate Blog

ABSORPTION RATE - The rate at which homes are selling in Whistler.

There are 3 pieces of information you will need to find absorption rate:

1.    The specific time frame
2.    The number of sold homes during that time frame
3.    The number of active homes right now

Here is how I calculated the absorption rate for the Whistler from January to June 30 2019

THE DATA

1. Time Frame =181 days (total days from January 1, 2019 to June 30, 2019

2. Number of Sold Homes =243 (from January 1, 2011 to June 30, 2019)

3. Number of Active Homes = 345

CALCULATIONS:

•          Rate of Home Sales =.7449 - 1 home is sold every .7449 days. This number is found by taking 181/243 (Time Frame/Number of Sold Homes)
•          Absorption Rate =  9.18 Months. Found by taking 345 x .7449 (Number of Active Homes x Rate of Home Sales) (divide by 7 (days) to get weeks and divide by 4 to get months)

What does this tell us?

If market conditions do not change and info new listings come on the market it will take 9.18 months for the current inventory to sell at the current pace of the market.

We are in a BUYER'S market

What does a Seller's Market mean?    What does a Buyer's Market mean?

Signs of a Buyer's Market

• Inventory is high as compared to previous months/years.
• More than six months of inventory is on the market.
• Comparable sale prices are higher than active listing prices.
• Fewer buyers are purchasing, resulting in lower closed sale numbers.
• Median sale prices are declining.
• Real estate ads are more everywhere and staying up longer.
• Properties aren't selling as quickly resulting in more days on the market.

Signs of a Seller's Market

Reach out for more updates and stats on the market.

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• real estate stats (1)
• whistler real estate market (1)
• real estate market updates (1)