Nanaimo real estate market as at February 29, 2020
According to statistics released at the end of February, by the Vancouver Island Real Estate Board, the Nanaimo real-estate market seems to be holding its own as compared to the same time last year.
Unit sales are down slightly in the single family home market and the townhouse market but are up in the lot & condo market. Prices are up slightly in all housing types with the exception of townhouses which are up 13% year to date.
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 February 2020(source VIREB) in Nanaimo:
| Property Type | # of sold unit’s | Average price |
|---|---|---|
| Single Family | 66 | $600,648 |
| Condo (Apt) | 15 | $306,258 |
| Condo (Patio) | 5 | $484,429 |
| Condo (Townhouse) | 21 | $402,167 |
| Lots | 13 | $260,992 |
The single-family home market in February 2020 was off a little from Feb. 2019. In fact, the number of unit sales were down by 6%. Houses were taking 6% more days to sell but the average sold price in Feb. 2020 was 10% higher than in Feb. 2019.
The Sell/List ratio is the percentage of houses that were listed that sold. In Feb. 2020 the Sell/List ratio was 52% which was lower than the Feb. 2019 ratio of 58%.
Sales of apartment style condos was down by 32% from Feb. 2019 and were taking 15% more days to sell than in Feb. 2019. However, in Feb. 2020 the average sales price was 11% lower than in Feb. 2019.
Sales of townhouse units were up by 75% from Feb. 2019. They were taking 38% fewer days to sell and the average sale price was 16% higher in Feb. 2020 than in Feb. 2019.
The sales of patio homes was the same in Feb. 2020 as compared to Feb. 2019. The average sale price for patio homes was 15% higher in Feb. 2020 as compared to Feb. 2019.
Overall the market in Feb. 2020 was steady albeit a bit slower in the way of unit sales than it was in Feb. 2019. Even though unit sales were down we are still seeing prices creeping up. Year-to-date single family home prices are up by 2% as compared to Feb. 2019
Absorption Rates for single family homes in February 2020 as compared to February 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 at February 29, 2020 compared to February 29, 2019
February 29, 2020 – 15.95 weeks to sell the inventory that was currently on hand at the end of February.
February 28, 2019 – 15.91 weeks to sell the inventory that was currently on hand at the end of February.
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 February 2019 we were experiencing a Balanced market. In February 2020 the absorption rate of 15.95 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.
Every Nanaimo buyer, seller, property, and neighbourhood has its own details. Ask Lumen for a quick next-step answer, check the latest market stats, or send your question to The Dan Morris Real Estate Team for personal guidance.