The CREB has cooled down somewhat and acknowledged the buyer's marker in their most recent update. Let's look back at one indicator they have been using to track the market, and how it has been changed over time.
Below are some charts showing absorption rates from the CREB monthly reports. The absorption rate is the number of months it would take to clear inventory assuming sales remain constant.
Absorption rate = Total inventory/monthly sales
Here is the July 2007 report. Note the blue band indicating a balanced market. Between 2-3.5 months inventory.
In the August 2007 report the absorption rate just exceeds the balanced market.
For September 2007 the absorption rate heads up as sales decline and inventory increases. As this value goes way outside the balanced market range the label is conveniently moved up.
For April 2008 the top of the previous balanced market range has moved up to 4 months.
Source CREB statistics: here
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