The sales stats at the end of November 2021 indicate that the Nanaimo real estate market is still a strong Seller’s market. We are still seeing multiple offers in all prices of homes.
The biggest changes year-to-date seem to be that at the end of November 2021, 15 % fewer homes were listed, Nanaimo single family house prices were up over November 2020 by 31.8%, the average sale was receiving 105.5% of asking price, and unit sales were down by 17 % as compared to November 2020.
The absorption rate indicates that we are still experiencing a strong Sellers market which was also happening in November 2020.
The market is proving to be very competitive which is continuing to be hard on buyers. The very low inventory levels are fueling the increase in sales prices.
Nanaimo housing market -
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 November 2021 (source VIREB) in Nanaimo:
Property Type # of sold unit’s Average price
Single Family 98 $937,161
Condo (Apt) 31 $477,010
Condo (Patio) 3 $544,967
Condo (Townhouse) 19 $540,224
Lots 14 $502,071
For single family homes that sold in November 2021 the average home took 11 days to sale as compared to November 2020 when it took 21 days.
Sales of apartment style condos were up compared to sales in November 2020 and were taking 9 days to sell in November 2021 compared to 22 in November 2020.
Sales of townhouses were up compared to unit sales in November 2020 and were taking 8 days to sell in November 2021 compared to 39 days in November 2020.
Sales of patio homes were down as compared to unit sales in November 2020 and were taking 5 days to sell in November 2021 compared to 35 days in November 2020.
Overall, the market in November 2021 was up. The biggest change was the increase in average price in all property types over the same month last year.
Absorption Rates for single family homes in November 2021 as compared to November 2020.
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.
November 2021 – 5.21 weeks to sell the inventory that was currently on hand at the end of November
November 2020 – 6.75 weeks to sell the inventory that was currently on hand at the end of November
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 still experiencing a strong Seller’s 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. A Seller’s market on the other hand is a market where supply is less than the demand. This type of market is a market that can sometimes give a Seller the advantage.
For additional information on the Nanaimo real estate market please give me a call.