The sales stats at the end of June 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 June 2021 37 fewer homes were listed, prices were up over June 2020 by 24% and unit sales were down by 20 % as compared to June 2020.
The average sale price for single family homes was up by 24 % compared to June 2020. Houses were receiving, on average 101.8 % of list price in June 2021 as compared to 98.9 % in June 2020. Additionally, the homes that did sell in June 2021 were selling in 53 % fewer days than they sold in June 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 May 2021 (source VIREB) in Nanaimo:
|Property Type||# of sold unit’s||Average price|
For single family homes that sold in June 2021 the average home took 21 days to sale as compared to June 2020 where it took 44 days.
Sales of apartment style condos were up from sales in June 2020 but were taking 59 fewer days to sell in June 2021 than in June 2020.
Sales of townhouses were up compared to unit sales in June 2020 and were taking 8 fewer days to sell in June 2021 than in June 2020.
Sales of patio homes were down as compared to unit sales in June 2020 and were taking 9 fewer days to sell in June 2021 than in June 2020.
Overall, the market in June 2021 was up. The biggest change was the increase in average price in all property types year-to-date except for patio homes.
Absorption Rates for single family homes in June 2021 as compared to June 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.
June 2021 – 6.43 weeks to sell the inventory that was currently on hand at the end of June.
June2020 – 26.70 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.
The absorption rate indicates that we are experiencing a strong Seller’s market but not as strong as the Seller’s market was in June 2020.
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.