Overall the Nanaimo real-estate market appears to have had a similar month in May 2019 as compared to May 2018 in most housing categories. There were just a few marked changes year-to-date according to the statistics released at the end of May by the Vancouver Island Real Estate Board. Numbers indicate that we are experiencing a robust spring market.
On a month-to month comparison unit sales are down in all property types except townhouses. Prices were up over the same time last year in all housing types except for lots.
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 2019(source VIREB) in Nanaimo:
|Property Type||# of sold unit’s||Average price|
The 2019 single-family home market is off a little from May 2018. In fact, the number of unit sales is down by 25%. Houses are taking 52% more days to sell yet the average sold price in May 2019 was 6% higher than in May 2018.
The Sell/List ratio is the percentage of houses that were listed that sold. Year-to-date, at the end of May 2019, the Sell/List ratio was 55% which is down by 12%.
Unit sales of apartment style condos is down by 23% and condos are taking 56% more days to sell. Average sale price is 8% higher year-to-date.
Sales of townhouse units is also down year-to-date by 18%. They are taking 20% fewer days to sell and the average sale price is 8% higher year-to-date.
The unit sales of patio homes are down by 15% with the average sale price for patio homes being 4% higher year-to-date. Patio homes are selling faster year-to-date by 20%.
Overall the market in May 2019 was steady albeit a bit slower in the way of unit sales than it was in May 2018. Even though unit sales are down prices are still creeping up. The biggest changes year-to-date are the number of units selling and the length of time they are taking to sell. Other than patio homes and lots all other property types are down in unit sales and up in the days it takes to sell.
Absorption Rates for single family homes in May 2019 as compared to May 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 May 31, 2019 compared to May 31, 2018
May 31, 2019 – 12.14 weeks to sell the inventory that was currently on hand at the end of May.
May 31, 2018 – 11.19 weeks to sell the inventory that was currently on hand at the end of May.
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 May 2018 we were still experiencing a seller’s market. However, in May 2019 the absorption rate of 12.14 weeks indicates that we are on the cusp of 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.