Overall the Nanaimo real estate market in June 2019 was steady with a few more unit sales than in June 2018. Even though it feels like the market is adjusting prices are still creeping up.
The biggest change year-to-date is the length of time homes are taking to sell. Other than patio homes and condos all other property types are up in unit sales and up in the days it takes to sell.
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 June 2019(source VIREB) in Nanaimo:
Property Type # of sold unit’s Average price
Single Family 112 $580,330
Condo (Apt) 24 $333,238
Condo (Patio) 7 $452,306
Condo (Townhouse) 21 $394,072
Lots 7 $350,057
The single-family home market in June 2019 was up a little from June 2018. In fact, the number of unit sales were up by 4%. Houses were taking 52% more days to sell, and the average sold price in June 2019 was 4% higher than in June 2018.
The Sell/List ratio is the percentage of houses that were listed that sold. In June 2019 the Sell/List ratio was 59% which was 12% higher than the June 2018 ratio of 47%.
Sales of apartment style condos was down by 33% from June 2018 and were taking 60% more days to sell than in June 2018. However, in June 2019 the average sales price was 7% higher than in June 2018.
Sales of townhouse units were the same as June 2018. They were taking 15 days to sell on average which was the same as June 2018, yet sale prices were up by 23% compared to sale price averages last June.
The sales of patio homes were down by 22% in June 2019 as compared to June 2018. The average sale price for patio homes was 2% higher in June 2019 as compared to June 2018.
Overall the market in June 2019 was steady albeit a bit slower in the way of unit sales than it was in June 2018. However, prices are still rising. The biggest change in most housing categories is the number of days it’s taking to sell the inventory on hand.
Absorption Rates for single family homes in June 2019 as compared to June 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 June 30, 2019 compared to June 30, 2018
June 30, 2019 – 15.17 weeks to sell the inventory that was currently on hand at the end of June.
June 30, 2018 – 16.09 weeks to sell the inventory that was currently on hand at the end of June.
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 June 2018 we were experiencing a balanced market. In June 2019 the absorption rate of 15.17 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.