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| Housing Market Trend in Niagara |
The Listing Absorption Rate and the Market
The number of listings on the market in the Niagara Region continues to rise. As of this writing, February 24, 2025, there are 2,857 MLS listings on the market, well above the norm.
A good way to gauge how the market is doing is to calculate the number of months of listing inventory. This is calculated in the following way:
- Current number of active listings
- Number of sales over a period of time, say 6 months or 3 months
- The average number of sales per month (divide the number of sales for the period by 6 and 3 months
- Finally, divide the number of listings by the average number of sales per month.
This indicates the market trend. So here are the latest 6-month numbers compared to 3 months.
| Months of Inventory in the Niagara Region | ||
| Over | Last 6 Months | Last 3 months |
| No. Active Listings on Feb/24/25 | 2857 | 2857 |
| Months of Sales | 6 Mth | 3 Mth |
| No. of Sales | 2884 | 1183 |
| Avg. No. Sales Per Month | 480.7 | 394.3 |
| Months of Inventory | 5.9 | 7.2 |
As you can see, the months of inventory, known as the absorption rate, have increased from 5.9 months over 6 months to 7.2 months over 3 months. It tells us how many months it would take for the market to absorb or sell the existing inventory, without any more listings coming to market. Yet the number of listings continues to grow.
How to Interpret the Chart Above
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So at 7.2 months, Niagara is definitely in a buyer’s market.
The absorption rate analysis provides important information to help sellers make better decisions about their home’s position in the marketplace.
Reach out for guidance – send an SMS to 905 329-2854 now!
