Lynn's Blog

Looking forward - The Nanaimo real estate market in 2016

The Nanaimo real estate market in 2016

The burning question for anyone considering buying or selling real estate in 2016 is, “How’s the market?”

If you spend a little time on the internet, you will find many articles on what analysts expect to happen to the real estate market in Canada, in 2016. Some say that the market is due for a correction, others state that the 2016 market should be similar to the 2015 market.  How does one know what to do?

I don’t pretend to know what will happen this year in real estate nor do I have any notable psychic abilities, however, I have got access to statistical data.

After reviewing sales stats for the year 2015, this is what we do know about the single family home market in Nanaimo:

Changes in single family home sales in 2015 as compared to 2014

Single family homes

2015

2014

Change

Number of units sold

1425

1230

+16 %

Average Sale price

$391,313

$370,760

+6 %

Days to sale

41

49

-16 %

 

Source: VIREB (Vancouver Island Real Estate Board)

The above numbers definitely reflect an improved market over 2014.  In 2015 there were more units sold, in less time and for more money, than in 2014.  Additionally, the increase in the assessed values that many of us are seeing on our BC Assessment notices reflects the stronger market as well.

The BC Assessment Roll shows the change to total assessed values in Residential Real estate in Nanaimo as an increase of 4.35%.

One of the reasons for the increase in single family home sale prices is due to the low inventory of homes available for sale.  Along with continuing low inventory levels we have a large pool of buyer’s in the market which is putting upward pressure on sale prices. 

According to the BC Real Estate Associations fourth quarter report for 2015; “2015 marks the 1st year since 2007 that BC home sales exceeded the ten year average.  The inventory of homes for sale has declined to its lowest level since 2007.  This has led to seller’s markets in Victoria and other preferred Island locations.”

So what does all this mean for buyers and sellers?

For the average home owner, it means that 2016 is probably a good time to sell.  As of this writing, inventory levels continue to be low which means there are fewer competing sellers.  With that in mind, NOW is a good time to list your home. Ask your Realtor to prepare a comparative market analysis for your home to determine the best price to list it for. If you don’t over-price your house you stand a very good chance of selling it in a reasonable time frame.

For those buying homes, it means that you are buying in a competitive market with other active buyers. It’s still possible to get a good home for a reasonable price but there will be many other buyers looking for the same thing.  I would advise buyers to have their mortgage pre-approval in place before they start looking for houses.  Once you are actively out house hunting be prepared to act quickly when you find the right home.  Multiple offers are common in a market where inventory levels are low. 

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