CAPITAL REGION SALES HOW TO INTERPRET ABSORPTION RATES An absorption rate is the rate at which available homes are in a specific market area during a given period of time. This is calculated by dividing the average number of sales into the number of homes currently on the market. The rate shows how many months it will take to exhaust the supply of homes. A value between 5 and 6 months is considered to indicate a healthy, balanced market. A value over 6 is considered a Buyers market, and values under 5 are generally a Sellers market.
Absorption Rate
Greater Victoria Area - (2015-2018)
Months of Inventory
8 7 7.2
6
7.3
7.1 6.4
6.6
5.6
5 3.9
4.1
4 3 2
3.9
3.7
4.0
5.0 4.5
3.4
2.5
2.3
2.7
3.8
3.1 3.3
2.6 2.3
2.5
2.4
2.5
2.2
4.0 3.8
2.1
2.3
2.4
2.3 2.1
2.2
2.0
2.1
2.0
December
November
October
2018
1.9
September
2017
1.9
August
July
2016
June
May
April
March
February
January
2015
4.0
2.5 2.0
1
4.3