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Georgian Triangle Absorption Rates

There are many ways to analyse the current real estate market. One of the ones I find most useful is the absorption rate. This is basically the mathamatical relationship between supply and demand and indicates the number of month's supply of a certain product in a certain area. For the purposes of determining the balance of supply and demand with respect to a buyers or sellers market, here are our recognized parameters:

Normal or balanced market: 5-6
Sellers market: 0-5
Buyers market: 7 +

The following absorption rates are calculated on a year to date basis to the end of November, 2008 for single family residential units only.

Clearview Township=10.5

Town of Collingwood=6.9

Town of Blue Mountains=15.3

Wasaga Beach=6.5

As can be seen by these numbers, we are generally in a Buyers market. In the case of the Town of Blue Mountains, with over 15 months supply of single family residential homes, pricing becomes critical.