Nanaimo real estate market report for November 2018

The sales stats at the end of November 2018 have changed significantly as compared to November 2017. The market is experiencing a shift, for sure. Looking at the single-family, condo & townhouse sales numbers as at Dec. 1, 2018 we are firmly in a balanced market as compared to a seller’s market at the same time last year.
A balanced market refers to a market whereby supply of listings is meeting the demand of home buyers.  This type of market is a much more comfortable market for buyer’s in that it’s not as competitive as the seller’s market we have been experiencing for the past three years.
A Balanced market is defined as a market that has 3-6 months of listing inventory.  

Below you’ll find some Single-family home stats:

Units listed

November 2018 - 124
November 2017 - 135   
Down by 8%

Units Sold

November 2018 – 76
November 2017 – 116
Down by 34%

Percentage of homes that sold that were listed

November 2018 – 61%
November 2017 – 86%

Average sell price 

November 2018 - $532,299
November 2017 - $5531,307
0% change

Percentage of list price received

November 2018 – 98%
November 2017 – 99%

Days to sell

November 2018 – 27
November 2017 – 31
Up by 27%

Absorption rate

One of the key indicators on how well the Nanaimo real estate market is doing is the absorption rate. 
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 numbers received from the latest real estate stats published by VIREB (Vancouver Island Real Estate Board) I can calculate the absorption rates for single family homes, condos & townhouses.
 

Single family homes:

November 2018 – 17.85 weeks to sell the inventory that was currently on hand at the end of November
November 2017 – 9.90 weeks to sell the inventory that was currently on hand at the end of November

Condos:

November 2018 –   26.71 weeks to sell the inventory that was currently on hand at the end of November
November 2017 – 8.67 weeks to sell the inventory that was currently on hand at the end of November

Townhouses:

November 2018 – 25.72 weeks to sell the inventory that was currently on hand at the end of November
November 2017 – 4.33 weeks to sell the inventory that was currently on hand at the end of November

What do these absorption rates tell us about the market?

By tracking these numbers monthly, it helps me to understand what type of real estate market Nanaimo is experiencing. Additionally, these absorption rates assist me in advising my clients on realistic expectations on the length of time it will take to sell their home.
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.
Based on this information you can see that there have been some significant changes in all three categories compared to the same time last year. As of Dec. 1, 2018, all three property types are experiencing a Balanced market.  However, if you compare the 2018 absorption rates in all three property types against the 2017 rates you will notice that November 2017 was very much a Sellers market.