Market Update And Absorption Rates

The following gives a snapshot of the absorption rate in the Niagara Region for residential properties.

What is an Absorption Rate? It is an estimate of the number of months it would take to sell the existing inventory of listings based on the average number of sales per month for a given period of time. Here we have used the last six months to June 30, 2012.

The absorption rate is used to define whether we have a sellers market, a neutral market or a buyer’s market. Here is the breakdown:

  • 1 to 4 months supply of homes is considered a Seller’s Market
  • 5 to 6 months supply, a Neutral Market
  • Over 6 months supply, a Buyer’s Market

It does not, however, take into account the fact that other homes will be coming on the market.

Here is how the residential market breaks down for the Niagara Region. Year-to-date to June 30th, 2012, the months of inventory overall is around 5 months. However, the various areas in the region account for all three types of markets as seen below.

From January 1, 2012 to June 30, 2012

Est. Months of Inventory

Market Type
Year-to- Date

St. Catharines

3

Seller’s Market

Niagara Falls

4

Seller’s Market

Lincoln

4

Seller’s Market

Thorold

4

Neutral Market

Welland

4

Neutral Market

Port Colborne/Wainfleet

5

Neutral Market

Fonthill/Pelham

7

Buyer’s Market

Fort Erie

10

Buyer’s Market

West Lincoln

11

Buyer’s Market

Niag-On-the-Lake

12

Buyer’s Market

Overall

5

Neutral Market

   (Source: Niagara Assoc. of REALTORS® , Fusion Stats Pro)

Eugene Pilato

Eugene Pilato

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