The Nanaimo real-estate market continues to show signs of an adjusting market according to statistics released at the end of September by the Vancouver Island Real Estate Board. In single family homes we continue to see some downward pressure on average sale prices. Average sale price for single family homes at the end of September was down by 2%. However, year-to-date prices are still up by 3%
Number of units listed in September were up in single family homes and condos but were down in lots, townhouses & patio homes. Number of units sold were up in all property types except for condo apartments and single family 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 September 2019(source VIREB) in Nanaimo:
Property Type # of sold unit’s Average price
Single Family 91 $569,667
Condo (Apt) 19 $352,716
Condo (Patio) 5 $435,700
Condo (Townhouse) 21 $402,247
Lots 12 $302,492
The single-family home market in September 2019 was off a little from September 2018. The number of unit sales were down by 7% and houses were taking 12% more days to sell. The average sold price in September 2019 was 2% lower than in September 2018.
The Sell/List ratio is the percentage of houses that were listed that sold. In September 2019 the Sell/List ratio was 48% which was 10% lower than the September 2018 ratio of 58%.
Sales of apartment style condos were down by 10% from September 2018 and were taking 81% more days to sell than in September 2018. However, in September 2019 the average sales price was 10% higher than in September 2018.
Sales of townhouse units were up by 24% from September 2018. They were taking 115% more days to sell and the average sale price was 19% higher in September 2019 than in September 2018.
The sales of patio homes were up by 67% in September 2019 as compared to September 2018. The average sale price for patio homes was down 3% in September 2019 as compared to September 2018.
Overall the market in September 2019 was steady albeit a bit slower in the length of time it was taking to turn inventory than it was in September 2018. Even though unit sales were down we are just beginning to see a change in prices. Year-to-date prices are still up but for the month of September 2019 they are down 2% as compared to September 2018
Absorption Rates for single family homes in September 2019 as compared to September 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 September 30, 2019 compared to September 30, 2018
September 30, 2019 – 17.76 weeks to sell the inventory that was currently on hand at the end of September.
September 30, 2018 – 16.05 weeks to sell the inventory that was currently on hand at the end of September.
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 September 2018 we were experiencing a balanced market. In September 2019 the absorption rate of 17.76 weeks indicates that we are still 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.