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The sales stats at the end of August 2020 for single family homes indicate the market is slower in unit sales than in August 2019 but up in average sale price.
The biggest changes year-to-date seem to be that at the end of August 2020 there were 5% fewer homes listed as compared to those listed in August 2019 and the number of homes sold were also down by 18%. The percentage of homes that were listed in August that sold were 16% as compared to 22% in August 2019.
The average sale price for single family homes was up by a whopping 13% compared to August 2019. Interestingly, homes were receiving, on average 99.3% of list price in August 2020 as compared to 97.9% in August 2019. Additionally, the homes that did sell in August 2020 were selling in 22% fewer days than they sold in August.
Based on the stats that VIREB (Vancouver Island Real Estate Board) have supplied, I am able to summarize the market as follows:
Below are the types of real estate sold in August 2020(source VIREB) in Nanaimo:
| Property Type | # of sold unit’s | Average price |
|---|---|---|
| Single Family | 101 | $657,493 |
| Condo (Apt) | 30 | $289,450 |
| Condo (Patio) | 4 | $435,000 |
| Condo (Townhouse) | 22 | $445,681 |
| Lots | 14 | $272,350 |
For single family homes that sold in August 2020 the average home took 13 days to sale as compared to August 2019 where it took 16 days.
Sales of apartment style condos were equal to unit sales in August 2019 but were taking 21 more days to sell in August 2020 than in August 2019.
Sales of townhouses were equal to unit sales in August 2019 but were taking 31 more days to sell in August 2020 than in August 2019.
Sales of patio homes were down by 20% as compared to unit sales in August 2019 and were taking 43 more days to sell in August 2020 than in August 2019.
Overall, the market in August 2020 was down. However, prices continue to rise in all property types year-to-date except for lots & patio homes.
Absorption Rates for single family homes in August 2020 as compared to August 2019
The above stats are informative but to get a true picture of how the local market is doing we need to calculate absorption rates. The definition of absorption rates is the number of weeks it takes to sell the current real estate inventory in Nanaimo at the present rate of sales.
Below you will find a comparison between absorption rates this year versus last year.
The absorption rate for single family homes in Nanaimo as of August 31, 2020 compared to August 31, 2019
August 31, 2020 – 27.61 weeks to sell the inventory that was currently on hand at the end of August.
August 31, 2019 – 19.39 weeks to sell the inventory that was currently on hand at the end of August.
As a rule of thumb, a Sellers market has less than 3 months of inventory, a Balanced market has between 3-6 months of inventory and a Buyer’s market has over 6 months.
The absorption rate indicates that we are hovering between a balanced market and a buyer’s market whereas we were experiencing a solid balanced market in August 2019.
A Balanced market is just that; a market where there are a similar number of buyer’s looking to buy real estate as there are sellers hoping to sell. A Buyer’s market on the other hand is a market where supply exceeds demand.
This type of market is a market that can sometimes give a buyer an advantage
For additional information on the Nanaimo real estate market please give me a call.
