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%SOLD Absorption Rates ( STR the Sell-Through-Rates/month) FAQ MENU
This is a very useful tool to determine if the Market is going Up or Down at this exact time to help our Sellers recognize the Best Price
We update the %SOLD rate for all lower mainland cities every two weeks so you and your clients know if we are in or trending towards
Sales: How are they calculated? The Sales in the Monthly STR are calculated using the date the Sale is reported and Processed by the individual Real Estate Boards. How do we Determine the STR with 2 weeks of data? The %SOLD rate is always reported as a monthly index (see the math) Why this date? ...It is because the Sold Date is a Moving Number. How? ...There is a varying time lag of the Sales being reported to the Real Estate Boards, so the same Sales numbers can vary from week to week. Good Realtors monitor the Sales Activity weekly to keep apprised of Market Activity. Let’s say we count 20 sales for last week for Single Family Detached Houses within a specific Board Area and then review the Sales Activity for the whole month. Then we check that same Sales Total the following month to see the Sales numbers went up by 30% ... not good. By using the methodology in the REMAX Market Reports (although harder to collect) we get a much cleaner and accurate Sales Count. What provides the True Picture... Active or Total Monthly Listings? To provide the most accurate picture of Monthly Sales Activity, the REMAX Market Reports uses the Starting Monthly Inventory PLUS Newly Listed Properties for that Month PLUS The Expired Listings for that Month PLUS the Canceled and Terminated Listings to create the Total Listings marketed for that month. Using All Properties Available for Sale during the Month: 15 Sales Out of 100 Total Listings Marketed for the Month= 15 %SOLD rate for the month. Does the 25 %SOLD rate mean prices will go up or down? After studying the %SOLD - Sell-Through (absorption) month rates for 28 years we have learned that it totally depends on the previous market history; for example if the market has been a Buyers Market Let me explain: In a market with a low 12 %SOLD for months where the average seller is discounting 7% from "list to sell" then they experience a jump to 25 %SOLD those sellers would immediately reduce their discounting and could even result in their homes selling for MORE than the list price.. So here we see a 7% increase in just a few weeks with 25 %SOLD rate. Then if the market is been records setting high amounts like 35 %SOLD rates and sales at $40,000 over list and then the sellers are no longer getting multiple offers and are actually coming down 3%. then at 25 %SOLD sold rate prices just drop $50-60 thousand dollars. Note: the STR %SOLD rate is always reported on a monthly rate ..;. so when looking at 2 week reports do remember that the %SOLD rate is adjusted to a 4 week rate so they are relatively consistent. eg: 2 weeks of sales over Inventory times 2.2 weeks in a month= the MONTHLY %%SOLD rate.
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