Posted by Colin Heggie on Sep 21, 2021
Don Miller, our Vernon Century 21 realtor since 2002, provided information about our local market, & focused on explaining the Absorption Rate, which is the average number of monthly sales divided by the number of properties for sale.  So, if 97 single family dwellings sold in a month featuring 172 listings, the absorption rate would be 56%, & it would take 1.7 months to sell all the listings.  This rate determines a buyer’s market vs. a seller’s market.  Over time & changing economic, political & regulatory circumstances, the pendulum swings between these two types of market.  Where all listings would typically sell within 5 months or less, it’s considered a seller’s market, & over 7 months is a buyer’s market.  During a seller’s market, one can expect prices to increase, & during a buyer’s market one would look for softening prices.  Our current 1.7 months indicator shows a very strong seller’s market, explaining significant recent price increases.  It should be noted that statistics will vary between property types (eg. SFDs, apartment condos, lakeshore, acreage, bare lots, commercial, industrial, etc.) as they don’t all perform the same way in the marketplace.  It’s always best to have some professional advice to inform your real estate decisions!