The Nanaimo real estate sales stats at the end of October 2019 have changed as compared to October 2018 according to statistics released at the end of October by the Vancouver Island Real Estate Board.
The single-family home market is experiencing a slight downward trend in prices, although overall for the 12 months to date, we are still up by 2%.
Number of units listed in October were down in single family homes, townhomes, patio homes and condos but were up in lots. Number of units sold were down in all property 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 October 2019(source VIREB) in Nanaimo:
Property Type # of sold unit’s Average price
Single Family 97 $556,717
Condo (Apt) 27 $282,396
Condo (Patio) 3 $459,927
Condo (Townhouse) 19 $402,963
Lots 4 $262,500
The single-family home market in October 2019 was off a little from October 2018. The number of unit sales were down by 20% and houses were taking 14% more days to sell. The average sold price in October 2019 was $2432. lower than in October 2018.
The Sell/List ratio is the percentage of houses that were listed that sold. In October 2019 the Sell/List ratio was 67% which was higher than the October 2018 ratio of 61%.
Sales of apartment style condos were down by 16% from October 2018 and were taking 41% more days to sell than in October 2018. In October 2019 the average sales price was 13% lower than in October 2018.
Sales of townhouse units were down by 14% from October 2018. They were taking 78% more days to sell, and the average sale price was 14% higher in October 2019 than in October 2018.
The sales of patio homes were down by 57% in October 2019 as compared to October 2018. The average sale price for patio homes was down 14% in October 2019 as compared to October 2018.
Overall the market in October 2019 was steady albeit a bit slower in the length of time it was taking to turn inventory than it was in October 2018. Even though unit sales were down we are just beginning to see a change in prices. Year-to-date prices are still up in all property types except for patio homes.
Absorption Rates for single family homes in October 2019 as compared to October 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 October 31, 2019 compared to October 31, 2018
October 31, 2019 – 15.41 weeks to sell the inventory that was currently on hand at the end of October.
October 31, 2018 – 11.92 weeks to sell the inventory that was currently on hand at the end of October.
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.
Current absorption rates indicate that we are in a balanced market whereas in October 2018 we were experiencing a weak seller’s 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.