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The sales stats at the end of September 2020 indicate the market has returned to a balanced market. However, in some single family home price ranges we are seeing a lot of activity and multiple offers.
The biggest changes year-to-date seem to be that at the end of September 2020 prices were up over September 2019 by 13% and unit sales are up by 21% as compared to September 2019. There were 4% fewer homes listed in Sept. 2020 compared to Sept. 2019
The average sale price for single family homes was up by a whopping 13% compared to September 2019. Interestingly, homes were receiving, on average 99.2% of list price in September 2020 as compared to 97.9% in September 2019. Additionally, the homes that did sell in September 2020 were selling in 7% fewer days than they sold in September 2019.
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 2020(source VIREB) in Nanaimo:
| Property Type | # of sold unit’s | Average price |
|---|---|---|
| Single Family | 145 | $638,352 |
| Condo (Apt) | 38 | $386,891 |
| Condo (Patio) | 3 | $403,333 |
| Condo (Townhouse) | 23 | $406,778 |
| Lots | 20 | $402,258 |
For single family homes that sold in September 2020 the average home took 31 days to sale as compared to September 2019 where it took 33 days.
Sales of apartment style condos were up from sales in September 2019 but were taking 22 more days to sell in September 2020 than in September 2019.
Sales of townhouses were equal to unit sales in September 2019 but were taking 29 fewer days to sell in September 2020 than in September 2019.
Sales of patio homes were down by 50% as compared to unit sales in September 2019 and were taking 7 fewer days to sell in September 2020 than in September 2019.
Overall, the market in September 2020 was up. However, prices continue to rise in all property types year-to-date.
Absorption Rates for single family homes in September 2020 as compared to September 2019
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 of September 30, 2020 compared to September 30, 2019 September 30, 2020 – 17.79 weeks to sell the inventory that was currently on hand at the end of September. September 30, 2019 – 18.64 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.
The absorption rate indicates that we are experiencing a solid balanced market as we were also experiencing in September 2019.
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 Buyer’s market on the other hand is a market where supply exceeds demand. This type of market is a market that can sometimes give a buyer an advantage
For additional information on the Nanaimo real estate market please give me a call.
