Market Absorption Rates in Niagara

Absorption Rates for 3 different periods for Detached Residential

What is an Absorption Rate?
It is the number of months of listing inventory within a given period of time. It indicates how many months it would take to absorb or sell the existing inventory of listings.

By showing the absorption rate for different periods, the analysis below gives the absorption rate trend.

Absorption Rate Analysis to November 2012

For the Last:

12 Months

6 Months

3 Months

Welland

Months of Inventory

4.6

4.6

4.9

Fonthill/Pelham
Months of Inventory

7.5

6.6

6.7

St. Catharines
Months of Inventory

4.2

4.2

4.5

Thorold
Months of Inventory

5.1

5.6

6.4

Fort Erie
Months of Inventory

9.5

9.0

10.0

Niagara Falls
Months of Inventory

5.2

4.9

5.5

Port Colb/Wainfleet
Months of Inventory

6.3

6.0

6.5

Niagara-on-the-Lake
Months of Inventory

10.1

9.0

10.4

Source: Niagara Association of REALTORS® FUSION Software and though deemed reliable cannot be guaranteed.

Interpreting Absorptions Rates
5 to 6 Months Supply equals a Balanced Market
Under 5 Months Supply Equals a Seller’s Market
7 Months Supply or more equals a Buyer’s Market

Based on these definitions, St. Catharines and Welland indicate a seller’s market. Fort Erie and Niagara-on-the-Lake point to a buyer’s market. The remaining municipalities designate a balanced market.

Eugene Pilato

Eugene Pilato

Broker of Record
CENTURY 21 Today Realty Ltd., Brokerage*
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