ABSORPTION RATE - The rate at which homes are selling in Whistler.
There are 3 pieces of information you will need to find absorption rate:
- The specific time frame
- The number of sold homes during that time frame
- The number of active homes right now
Here is how I calculated the absorption rate for the Whistler from January to June 30 2019
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
- Rate of Home Sales =.7154 - 1 home is sold every .7194 days. This number is found by taking 181/243 (Time Frame/Number of Sold Homes)
- Absorption Rate = 8.82 Months. Found by taking 345 x .7154 (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 8.882 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
- Inventory is very low as compared to previous months/years.
- Fewer than six months of inventory is on the market.
- Comparable sale prices are lower than active listing prices.
- More buyers are purchasing, resulting in higher closed sale numbers.
- Median sale prices are increasing.
- Real estate ads are vanishing.
- 'For Sale' signs are up for a few days before a pending or sold sign is attached
Signs of a Neutral Market
- Inventory is normal as compared to previous normal months/years.
- Three to six months of inventory is on the market.
- Comparable sale prices are close to active listing prices.
- Sales numbers have stabilized.
- Median sales prices are flattened.
- Real estate advertising remains uniform.
- 'For Sale' signs are replaced with pending or sold signs within 30 to 45 days
Reach out for more updates and stats on the market.