We are half way through 2018 and it feels like there is a change in the air in the Nanaimo real estate market. After reviewing the Vancouver Island Real Estate Board stats for the month of June, the numbers also seem to indicate that the real estate market is slowing.
There have been many changes that are affecting the slowdown in the real estate market including the rising interest rates and the foreign buyer tax.
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.
Based on the sales data information I received from VIREB, I have calculated the absorption rates for real estate here in Nanaimo. This information helps me to recognize any trends in the marketplace so that I can keep my clients informed. It’s especially useful for home sellers so they can have a realistic idea of how many days its likely to take to sell their house.
Below you will find a comparison between absorption rates this year versus last year.
The absorption rate of single family homes in Nanaimo in June 2018 compared with June 2017
June 2018 – 16.13 weeks to sell the inventory that was currently on hand at the end of June.
June 2017 – 7.57 weeks to sell the inventory that was currently on hand at the end of June.
We have been experiencing a seller’s market now for at least 2.5 years. However, the numbers above indicate that we have slipped into a balanced market.
A balanced market is defined as a market that has 4-6 months of listed inventory. Source Real Estate Board of Greater Vancouver,
Balanced markets mean that there are a similar number of buyer’s looking to buy real estate as there are sellers hoping to sell. As a result of the slight slow down it is possible that we will see home prices decrease a little over the next few months.