March 2019 was similar to February 2019 in that the Nanaimo real estate market stats, released by the Vancouver Island Real Estate Board, continue to show signs of an adjusting market.
Unit sales are down in all property types with prices holding steady in single family homes and townhouses and down in condos and patio homes.
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 March 2019(source VIREB) in Nanaimo:
|Property Type||# of sold unit’s||Average price|
The single-family home market in March 2019 was off a little from March 2018. In fact, the number of unit sales were down by 4%. Houses were taking 70% more days to sell, and the average sold price in March 2019 was on a par with March 2018.
The Sell/List ratio is the percentage of houses that were listed that sold. In March 2019 the Sell/List ratio was 48% which was 3% lower than the March 2018 ratio of 51%.
Sales of apartment style condos was down by 6% from March 2018 and were taking 88% more days to sell than in March 2018. In March 2019 the average sales price was 10% lower than in March 2018.
Sales of townhouse units were also down by 28% from March 2018. They were taking 220% more days to sell and the average sale price was 5% higher in March 2019 than in March 2018.
The sales of patio homes were down by 67% in March 2019 as compared to March 2018. The average sale price for patio homes was 14% lower in March 2019 as compared to March 2018.
Overall the market in March 2019 was steady albeit a bit slower in the way of unit sales than it was in March 2018. Even though unit sales were down we are just beginning to see prices inching downwards as compared to the previous years prices. However, year-to-date prices are still up in all housing property types.
Absorption Rates for single family homes in March 2019 as compared to March 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 March 31, 2019 compared to March 31, 2018.
March 31, 2019 – 14.23 weeks to sell the inventory that was currently on hand at the end of February.
March 31, 2018 – 11.90 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 March 2018 we were still experiencing a strong seller’s market. However, in March 2019 the absorption rate of 14.23 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.