2016: Year of Real Estate Improvement in Nanaimo

2016: Year of Real Estate Improvement in Nanaimo 

Markets:

We are seeing a steady real estate market recovery taking place, but not an unmanageable “boom” like Vancouver.

PRICES

1. In Nanaimo, single family home prices have risen slightly in the past 12 months (average sale price was $398,053 compared to $375,884 – up 6% over past 12 months).

2. For the month of March 2016, the average sale price for a home was $427,786 – up 5% over March 2015 ($408,070).

3. Sale prices are 2% lower over the past 12 months for patio strata homes prices, although March 2015 saw the average price increase by 6% compared to March 2015 with the average patio home selling at $313,246 compared to $296,488. Townhome prices stayed relatively the same compared to last March and overall the average price has slipped by 1% over the past 12 months. Condos rose slightly by 6% in price during this same time. In all likelihood, the price point for condos is an attractive feature for first-time home buyers and those downsizing from family homes as the average sale price over the past 12 months for a condo is $224,807.

4. Lot sale prices saw an increase of only 1% over the past 12 months. Sale prices saw an increase in March by 13% compared to March 2015. The average lot sale price last month was $174,988 compared to $154,646 for the same month last year – up 13%, although inventory cannot keep up with demand for new housing.

LISTINGS

1. The number of lots listed for sale has dropped by 23% for the past 12 months. In March, we saw a definite lack of inventory for lots with only 19 lots listed that month compared to 31 listed in March 2015. Interestingly, our McCullough Team launched the sale of a new development of lots in Parksville recently and have secured sales on over 50% of them in a very short amount of time. This shows us that demand for new homes will push buyers into looking at different areas and nearby cities for their real estate needs.

2. Single family home listings were up by 26% for March, although we have seen only 2061 listings on the market for the past 12 months compared to 2074 previously. This indicates that sellers are still a bit hesitant to “move up” or “downsize”, and are concerned about the value of their property and if there will be even higher sales prices in the market on the horizon. We are seeing this concern expressed by many North Nanaimo and Hammond Bay home owners who are seeing home sales reach new highs in their neighbourhood with out of town investors and buyers focusing on these two neighborhoods.

SALES – increased market activity has been reported in all segments of real estate with the exception of lot sales (due to lack of inventory).

1. The majority of home sales in 2016 are in North Nanaimo (98 home sales) and comprise 24.2% of total home sales so far.

2. Homes sold in March were on the market for an average of 39 days before selling compared to 43 in March 2015. (This is a very positive sign!)

3. Homes sold at an average of 98% of asking price in March compared to March 2015. Overall, for the past 12 months, sell price/list price has remained steady at 97%.

If you would like more information about buying real estate in Nanaimo, please feel free to contact Brian and Myles anytime at 250-751-1223. We would be pleased to provide you with a FREE Home Evaluation for your property to determine the current value in today’s changing real estate market. If you would like to view all of the March 2016 graph stats by VIREB (Vancouver Island Real Estate Board), click here: https://www.dropbox.com/s/czrsny825gp2ien/03-Mar%2016%20Nanaimo%20Graphstats.pdf?dl=0

Best Regards,
Brian & Myles McCullough
www.mmshomes.com

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