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The sales stats at the end of May 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 May 2021 29.5% more homes were listed, prices were up over May 2020 by 33% and unit sales were up by 90 % as compared to May 2020.
The average sale price for single family homes was up by 33% compared to May 2020. Houses were receiving, on average 100.8 % of list price in May 2021 as compared to 99.1 % in May 2020. Additionally, the homes that did sell in May 2021 were selling in 46 % fewer days than they sold in May 2020.
Based on the stats that VIREB (Vancouver Island Real Estate Board) have supplied, I am able to summarize the market as follows:
| Property Type | # of sold unit’s | Average price |
|---|---|---|
| Single Family | 194 | $792,024 |
| Condo (Apt) | 47 | $370,337 |
| Condo (Patio) | 2 | $649,950 |
| Condo (Townhouse) | 20 | $478,023 |
| Lots | 11 | $482,250 |
For single family homes that sold in May 2021 the average home took 19 days to sale as compared to May 2020 where it took 35 days.
Sales of apartment style condos were up from sales in May 2020 but were taking 36 fewer days to sell in May 2021 than in May 2020.
Sales of townhouses were up compared to unit sales in May 2020 and were taking 13 fewer days to sell in May 2021 than in May 2020.
Sales of patio homes were down as compared to unit sales in May 2020 and were taking 11 fewer days to sell in May 2021 than in May 2020.
Overall, the market in May 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 May 2021 as compared to May 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.
Absorption rate
May 2021 – 6.43 weeks to sell the inventory that was currently on hand at the end of May
May 2020 – 26.70 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.
The absorption rate indicates that we are experiencing a strong Seller’s market whereas we were experiencing a balanced market in May 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.
For additional information on the Nanaimo real estate market please give me a call.
