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Buyer's Market is here

The single family home absorption rate moved up a notch to 3.6 today. That officially moves the market into buyer's territory, however, for homes priced under $500,000 it's still in balanced market conditions.

An absorption rate of 3.6 translates into a 108-day supply of homes.

For homes priced between $300,000 - $400,000 there is a 90-day supply.

If you're thinking of selling, it's more important than ever to price your home correctly. Buyers have a better selection(finally!) of homes to choose from, and inventory continues to grow.

You can see the complete table of absorption rates here Absorption rates by price range

Posted: Sunday, April 25, 2010 8:26 AM by Bob Truman

Comments

Bob Truman said:

The absorption rates can be very different in the various communities. some high-end communities have low absorption rates, and vice-versa.

Absorption Rates by Community

For the 30-day period ending on Apr 24, for single family homes:

 

 

Area

 

Absorption Rate

 

Average Price

 

The following communities have an exceptionally low absorption rate

Cougar Ridge

1.6

490,855

Canyon Meadows

1.8

409,291

Mount Pleasant

1.9

532,822

Tuscany

2.1

485,448

Bridlewood

2.3

399,639

Royal Oak

2.4

502,682

McKenzie Towne

2.4

390,844

New Brighton

2.4

405,212

 

The following communities have a high rate considering their low avg price

Rundle

3.5

311,760

Coventry Hills

4.3

360,473

Riverbend

4.6

376,500

 

These communities have a low rate considering their high avg price

West Springs

2.8

611,446

Edgemont

3.1

594,655

 

Others

Scenic Acres

2.8

454,611

Copperfield

2.8

400,893

Bowness

3.3

330,605

Evergreen

4.5

433,600

Elbow Park

5.5

1,049,812

 

 

 

0-1.8 is a seller’s market

1.9 – 3.5 is a balanced market

3.6 and over is a buyer’s market

 

 

 

# April 25, 2010 11:04 AM

Bob Truman said:

Looking at Cougar Ridge's low absorption rate, it shouldn't come as a surprise that 4 homes have sold at list price or higher in the past month. That's 21% of all sales.

Two homes sold at list price or higher in Canyon Meadows, which was 17% of all sales.

# April 25, 2010 11:16 AM

Jimmy said:

Once you break it down into individual markets you should expect wild swings in the data based on the low total numbers of houses you are examining. You really should look at a 6 month period or so to get an idea of what the true neighbourhood ab rate is.

How would you calculate a "6-month absorption rate?" Divide the inventory by the 6 month sales? I guess that could be a whole new category of statistics. -Bob

# April 26, 2010 9:09 AM

Newt said:

Looks like even the central bank is now saying that housing prices will fall over the next couple of years.  I bet Garth is loving life right now.

This buyers market will likely only get better and better for the buyer.

Newt

# April 28, 2010 8:46 AM

Spence said:

I agree Newt.  There seems to be a growing acceptance of the fact that prices have to trend down a bit.  There needs to be a correction to maintain the pool of potential buyers in the face of rising rates.  A correction would help keep the housing market vibrant.  My only hope is that the correction is a gentle slope rather than a meltdown.          

# April 28, 2010 1:37 PM

Grace said:

Hi Bob:

My co-worker told me about the condo "The Stanley" is a good buy (investment-wise), what's your say?

I'm not familiar with it. Let's see if any bloggers here can offer you some opinions. -Bob

# April 29, 2010 10:29 AM

Crabman said:

RE: "The Stanley" as an investment.

One of the 900 sq ft units is for sale at $300k:

http://www.jimsparrow.com/idx/residential/C3423445/details.html

A similar unit is offered for rent at $1,500:

http://calgary.rentersonline.com/rental_details.php?property_id=4781

After condo fees and property taxes, you are looking at net income of about $11,400/year or 3.7%. Considering the work it takes and the risk of a bad tenant or special assessment, it's not a very good investment IMHO.

# April 30, 2010 11:56 AM
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