Did you know that the most important Real Estate statistic is the absorption?

The absorption is the percentage of Real Estate inventory that sells on a monthly basis. For instance, if there are 1000 houses on the market in the Okanagan Shuswap in June and 100 of them sell in June then the absorption is 10%. The reason the absorption is so important is that it is the indicator for the 2 driving forces in the Real Estate market; supply and demand. Experts say that a balanced Real Estate market has an absorption rate of 12 to 14 %. Where are we now in the Okanagan Shuswap? The absorption for June was 25% in the Shuswap, 19% for the Central Okanagan and 20 % for the North Okanagan. It is important to note the the absorption is decreasing in all three zones. That means our market is correcting. However, we are still above that 12 to 14% cut off. Therefore, although the market is slowing it will remain relatively strong over the next year or 2. If you are interested in getting a monthly update on the Okanagan Shuswap Real Estate market send me an email and I will keep you up to date. 

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