April 2019 real estate sales in Nanaimo were brisk but still off from the same time last year in all categories of housing except for the sale of lots. The April 2019 real estate market stats, released by the Vancouver Island Real Estate Board, continue to show signs of an adjusting market.
Unit sales are down in all property types ( except the sale of lots) with average sale prices up in single family homes, townhouses, condos, patio homes & lots.
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 April 2019(source VIREB) in Nanaimo:
|Property Type||# of sold unit’s||Average price|
The single-family home market in April 2019 was off from April 2018. In fact, the number of unit sales were down by 15%. Houses were taking 50% more days to sell, but the average sold price in April 2019 was 6% higher than in April 2018. The average sold price is also 6% higher year-to-date.
The Sell/List ratio is the percentage of houses that were listed that sold. In April 2019 the Sell/List ratio was 57% which was 3% higher than the April 2018 ratio of 54%.
Sales of apartment style condos was down by 22% from April 2018 and were taking 48% more days to sell than in April 2018. In April 2019 the average sales price was 18% higher than in April 2018.
Sales of townhouse units were also down by 15% from April 2018. They were taking 154% more days to sell, and the average sale price was 15% higher in April 2019 than in April 2018.
The sales of patio homes were down by 46% in April 2019 as compared to April 2018. The average sale price for patio homes was 9% higher in April 2019 as compared to April 2018.
Overall the market in April 2019 was steady albeit a bit slower in the way of unit sales than it was in April 2018. Even though unit sales were down we are still seeing prices inching upwards as compared to the previous year’s prices.
Absorption Rates for single family homes in April 2019 as compared to April 2018
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 at April 30, 2019 compared to April 30, 2018
April 30, 2019 – 14.29 weeks to sell the inventory that was currently on hand at the end of April.
April 30, 2018 – 10.94 weeks to sell the inventory that was currently on hand at the end of April.
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.
In April 2018 we were still experiencing a strong seller’s market. However, in April 2019 the absorption rate of 14.29 weeks indicates that we are now experiencing a balanced market.
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.
For additional information on the Nanaimo real estate market please give me a call.