7 Months Supply or more equals a Buyers Market

Market Absorption Rates in Niagara

Based on Sales for the last 6 months for detached homes

What is an Absorption Rate?
It is a trend of the number of months it would take for the market to absorb or sell the existing inventory of listings. The chart below gives the absorption rate trend based on the existing listing inventory and the number of sales over the last six months.

Absorption Rate Analysis to April 2013

City

Active Listings

Sales Last 6 Months

Average No. of Sale per Month

Months of Inventory

Welland

232

238

40

6

Port Colborne
/Wainfleet

198

117

19.5

10

Thorold

93

86

14

6.5

St. Catharines

434

596

99

4.4

Fort Erie

419

227

38

11

Niagara Falls

425

406

68

6.3

Niagara-on-the-Lake

229

97

16

14.2

Lincoln

97

79

13

7.4

West Lincoln

36

25

4

8.6

Source: Niagara Association of REALTORS® FUSION Software-- 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

s a seller, the absorption rate helps you to determine how aggressive to be with pricing in an effort to better position the listing in the marketplace. If the trend is increasing it’s turning into a buyer’s market, if the trend is decreasing the market could be heading into a seller’s market.

John Noble

John Noble

Sales Representative
CENTURY 21 Today Realty Ltd., Brokerage*
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