How to Advise Clients on the Ever Changing Market

Explaining the current market to clients can be tough!

But it doesn't have to be that way! There is a simple way to impress your clients with your knowledge of the market without overwhelming them.

It's what separates good agents from great agents. 

Introducing The Absorption Rate

If you've ever answered the question "How long will it take for my house to sell?" then this is the metric for you!

Let's take a look at the January 2020 numbers and what they mean.

Municipality Absorption Rate (Months)
Dufferin 2.71
Durham 1.90
Halton 1.85
Peel 1.84
Toronto 1.96
York 2.43
The Absorption Rate is the rate at which homes are selling in a given area. Click here to learn about calculating it yourself.

The table above shows that if no new listings come on the market it will take 1.96 months for the current investory to sell at the current pace of the market.

A balanced market's absorption rate is typically between 5-7 months.

Based on the numbers above the GTA is -- most certianly -- still a seller's market!

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