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.

  • $580,000 - Townhouse 72 15405 31 avenue, Surrey

    MLS® R2265122
    Welcome to Nuvo2! Premium location close to Morgan Creek and Rosemary Heights. 3 Bedroom (2+Den) 3 Bath. [...]
    Listed by: Coldwell Banker Marquise Realty
  • $1,216,888 - House/Single Family 15070 20th avenue, Surrey

    MLS® R2259758
    Location! Location! Rare opportunity! Welcome to beautiful South Surrey! Nestled between beautiful parks, [...]
    Listed by: Coldwell Banker Marquise Realty
  • $12,500,000 - Other 4709 willet road, Abbotsford

    MLS® R000000
    The hidden gem of the valley. Located in beautiful Sumas Mountain yet minutes away from town and off [...]
    Listed by: Vantage Real Estate Group
        

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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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