The Nanaimo real-estate market continues to show signs of an adjusting market according to statistics released at the end of February by the Vancouver Island Real Estate Board.
Unit sales are down in all property types with prices softening in single family homes and patio homes and up slightly in condos and townhouses.
Based on the stats that VIREB(Vancouver Island Real Estate Board) havesupplied,I am able to summarize the market as follows:
Below are thetypes of real estate soldin February 2019(source VIREB) in Nanaimo:
|Property Type||# of sold unit’s||Average price|
The single-family home market in February 2019 was off a little from Feb. 2018. In fact,the number of unit sales were down by 16%. Houses were taking 6% more days to sell,and the average sold price in Feb. 2019 was 1% lower than in Feb. 2018.
The Sell/List ratio is the percentage of houses that were listed that sold. In Feb. 2019 the Sell/List ratio was 59% which was 2% lower than the Feb. 2018 ratio of 61%.
Sales ofapartment style condoswas down by 42% from Feb. 2018 and were taking 44% more days to sell than inFeb. 2018.However,in Feb. 2019the average sales price was 4% higher than in Feb. 2018.
Sales of townhouse units were also down by 33% from Feb. 2018. They were taking 35% fewer days to sell and the average sale price was 8% higher in Feb. 2019 than in Feb. 2018.
The sales of patio homeswere down by 17% in Feb. 2019 as compared to Feb. 2018. The average sale price for patio homes was 9% lower in Feb. 2019as compared to Feb. 2018.
Overall the market in Feb. 2019 was steady albeit a bit slower in the way of unit sales than it was in Feb. 2018. Even though unit sales were down we are just beginning to see a change in prices.Year-to-date prices are still up but for the month of February 2019 they are down 1% as compared to Feb. 2018
Absorption Rates for single family homes in February 2019 as compared to February 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 February 28, 2019 compared to February 28, 2018
February 28, 2019– 15.81 weeks to sell the inventory that was currently on hand at the end of February.
February 28, 2018 – 10.70 weeks to sell the inventory that was currently on hand at the end of February.
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 February 2018we were still experiencing a strong seller’s market. However, in February 2019 the absorption rate of 15.81 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.