The Nanaimo real-estate market continues to show signs of an adjusting market according to statistics released at the end of July by the Vancouver Island Real Estate Board. In fact, July was the first month to show a decrease in the average sale price. Average sale price for single family homes was down by 2%.
Number of units listed in July were down in single family homes and townhouses but up in lots, condos & patio homes. Number of units sold were up in all property types except for condo apartments.
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 July 2019(source VIREB) in Nanaimo:
Property Type # of sold unit’s Average price
Single Family 109 $554,240
Condo (Apt) 26 $376,354
Condo (Patio) 10 $436,824
Condo (Townhouse) 22 $366,259
Lots 10 $276,110
The single-family home market in July 2019 was off a little from July 2018. The number of unit sales were the same but houses were taking 42% more days to sell, and the average sold price in July 2019 was 2% lower than in July 2018.
The Sell/List ratio is the percentage of houses that were listed that sold. In July 2019 the Sell/List ratio was 58% which was 10% higher than the July 2018 ratio of 48%.
Sales of apartment style condos were down by 30% from July 2018 and were taking 80% more days to sell than in July 2018. However, in July 2019 the average sales price was 25% higher than in July 2018.
Sales of townhouse units were up by 38% from July 2018. They were taking 17% fewer days to sell and the average sale price was 10% higher in July 2019 than in July 2018.
The sales of patio homes were up by 67% in July 2019 as compared to July 2018. The average sale price for patio homes was on a par in July 2019 as compared to July 2018.
Overall the market in July 2019 was steady albeit a bit slower in the length of time it was taking to turn inventory than it was in July 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 July 2019 they are down 2% as compared to July 2018
Absorption Rates for single family homes in July 2019 as compared to July 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 July 31, 2019 compared to July 31, 2018
July 31, 2019 – 15.42 weeks to sell the inventory that was currently on hand at the end of July.
July 31, 2018 – 17.52 weeks to sell the inventory that was currently on hand at the end of July.
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 July 2018 we were experiencing a balanced market. In July 2019 the absorption rate of 15.42 weeks indicates that we are still 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.