If you’re thinking about buying a home in Nanaimo, it’s important to understand all of the factors that go into making a smart purchase decision. You should have a big-picture idea of how the Nanaimo BC real estate market works. You’ll also need to know how to analyze the seemingly countless real estate statistics available and understand how to apply them to your local market. Let’ take a look at three important basic housing market definitions, followed by 5 of the top real estate statistics that every home buyer in Nanaimo should know.
Three important basic housing market definitions to understand
There are three basic definitions used to describe different phases of the housing market:
When there are more homes for sale that there are buyers. Homes stay on the market for sale longer. Sellers become more motivated to sell and are more likely to give buyers the concessions they’re looking for.
This is the opposite of a buyer’s market and occurs when there are more people who want to buy homes than there are homes on the market. This can cause home prices to rise because there’s more demand than supply. Multiple offers and bidding wars are also common in seller’s markets.
Real estate markets always move in cycles. When there are enough homes on the market to meet demand from buyers, the market is balanced. A balanced market occurs as housing supply swings from a buyer’s market to a seller’s market or vice versa. Now let’s look at 5 important statistics ever buyer should know about the Nanaimo BC real estate market. Understanding what these statistics mean will help determine which of phase of the housing market we’re currently in.
5 real estate statistics that every buyer should know To help you decide if the time is right to buy a home in Nanaimo, here are five of the top real estate statistics to consider:
#1 Is housing demand on the rise?
When more people start looking for homes, over a short period of time demand can rise along with home prices.
#2 How long does it take buyers in Nanaimo to search for a home?
If buyers are taking longer than average to find a home to buy, that’s a sign that they feel there are plenty of homes on the market to choose from and that they don’t feel pressure to buy right away.
#3 What is the trend of new home construction?
If there are a lot of new homes being built, there will be more inventory on the market. If buyers see more value in a new home, the prices of resale homes could decline with sellers becoming more motivated to sell.
#4 What is the most recent median listing price?
Median is the price that occurs most often among a group of homes with similar characteristics. If median listing prices are rising, so is demand. If they are going down, it could be a sign that the market is moving into a buyer’s market.
#5 Are sellers having to lower their price to sell?
Listing price is what sellers would like to get, selling price is what the home actually sells for. When the real estate market is shifting, it’s possible that median listing prices don’t change while sales prices do. Eventually the two statistics catch up with one another. But until they do, there’s a window of opportunity for sellers and buyers.
Knowledge is power
Understanding the basic phases of the housing market in Nanaimo and these five important real estate market statistics will let you buy a home in Nanaimo armed with the knowledge you need. You’ll understand if now is the right time to buy and have a good idea if we’re in a seller’s market, a buyer’s market, or if the real estate market is balanced.