The sales stats at the end of July 2021 indicate that the market continues to be a strong Seller’s market. We are still seeing multiple offers in all prices of homes.
The biggest changes year-to-date seem to be that at the end of July 2021 22% fewer homes were listed, prices were up over July 2020 by 37% and unit sales were down by 7 % as compared to July 2020.
The average sale price for single family homes was up by 37% compared to July 2020. Houses were receiving, on average 100% of list price in July 2021 as compared to 99.1 % in July 2020. Additionally, the homes that did sell in July 2021 were selling in 14 fewer days than they sold in July 2020.
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 2021 (source VIREB) in Nanaimo:
|Property Type||# of sold unit’s||Average price|
For single family homes that sold in July 2021 the average home took 25 days to sale as compared to July 2020 when it took 39 days.
Sales of apartment style condos were up from sales in July 2020 but were taking 15 fewer days to sell in July 2021 than in July 2020.
Sales of townhouses were down compared to unit sales in July 2020 and were taking 1 fewer day to sell in July 2021 than in July 2020.
Sales of patio homes were down as compared to unit sales in July 2020 and were taking 20 days more to sell in July 2021 than in July 2020.
Overall, the market in July 2021 was up. The biggest change was the increase in average price in all property types year-to-date .
Absorption Rates for single family homes in July 2021 as compared to July 2020.
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.
July 2021 – 5.28 weeks to sell the inventory that was currently on hand at the end of July.
July 2020 – 8.27 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.
The absorption rate indicates that we are still experiencing a strong Seller’s 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. A Seller’s market on the other hand is a market where supply is less than the demand. This type of market is a market that can sometimes give a Seller the advantage.