Market Update Sept 2012
Abbotsford 11% Absorption Rate (good for Buyers)
Mission 9% Absorption Rate (good for Buyers)
Langley 15% Absorption Rate (good for Buyers)
In August, sales on the Fraser Valley Real Estate Board's Multiple Listing Service® (MLS®) ranked the third lowest for the month in the last decade - after 2008 and 2010.
Last month's 1,073 property sales represent a 20 per cent decrease compared to the 1,341 sales during August of last year and 23 per cent fewer than in July. In 2008, the Board processed 910 sales in August, and in 2010, 997.
"It was a slower August, but nowhere near historical lows for our Board so it's too soon to tell if it's a sign of a longer-term trend or if buyers and sellers in the Fraser Valley finally enjoyed a bit of summer," explains Scott Olson, FVREB president. "We do know that our economy currently remains fundamentally strong with stable mortgage and employment rates; and, our region in particular has some of the fastest growing communities in the Lower Mainland."
Absorption Rates Explained
If we have 100 homes on the market and we consume (sell) 18-22 (18%-22%) of these homes per month that is a balanced market, fair for buyers and fair for sellers.
If we sell under 18% it becomes a Buyers market with a lot of inventory for buyers to choose from. Sellers will have to make some price adjustments or do some minor updates such as increase curb appeal to attract a buyer.
If we sell over 22% it becomes a Sellers market. Buyers will find themselves in multiple offer situations and potentially loose out on the house the are bidding on.
If you would like a market update of any other city listed here, simply email me and we are happy to get one out to you at no cost or obligation.
