Absorption Rate In White Rock Real Estate

Absorption rate, or sales to listings ratio is not often talked about although it's very important. So important that after the US crash in 2009 the government told appraisers that this must be considered in property valuations.

It's pretty simple and it's the number of sales in a month and divided by number of listings. So the higher this number gets the quicker inventory is getting eaten up. 100% means everything is selling. In White Rock, anything over 20% is considered a pretty balanced market which also means 5 months of inventory if nothing else comes on the market.

In 2007 and 2011 when we saw a spike it was at 30%. This spring when the market was crazy it hit close to 60% or one and a half month of inventory! No wonder people were rushing to buy a house and bidding higher than the next guy. The impression was there was going to be nothing for sale next month!!

At the end of November we’re sitting at 20%. Yes, it’s a huge drop but we were also at a ridiculous levels.

  • $539,888 - Townhouse 30 15175 62a avenue, Surrey

    MLS® R2417488
    Immaculate Corner Unit** Highlighted by Designer Laminate Flooring & New Appliances with a Double Oven. [...]
    Listed by: Coldwell Banker Marquise Realty
  • $1,100,000 - Townhouse 4 1285 harwood street, Vancouver

    MLS® R2415183
    Boutique corner unit townhouse in the West End. Enter the home through the private entrance of the strata's [...]
    Listed by: Coldwell Banker Marquise Realty
  • $1,350,000 - House/Single Family 9745 182 street, Surrey

    MLS® RXXXXXXX
    Brand new, corner lot home with a two bedroom suite, plus two additional rooms downstairs for a [...]
    Listed by: Coldwell Banker Marquise Realty
        

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This representation is based in whole or in part on data generated by the Chilliwack & District Real Estate Board, Fraser Valley Real Estate Board or Real Estate Board of Greater Vancouver which assumes no responsibility for its accuracy.

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