Nanaimo Real Estate Sales at 10-Year Low for July 2022

Posted by Scott Lissa on Tuesday, August 2, 2022 at 2:54 PM By Scott Lissa / August 2, 2022 Comment

Nanaimo Real Estate Market | July 2022

Lowest House Sales in Over 10 Years

The Nanaimo Real Estate Market in July 2022 has seen a significant shift though prices remain high for single-family homes compared to 2021. Many buyers are waiting for the bottom of the market. They may However price themselves out of the market if interest rates continue to rise to combat the inflation created by poor government fiscal policy.

Line graph showing home sale values on Nanaimo

Typically in July, the real estate market heats up as families sell their homes in search of a new house before the beginning of the school year in September. However, uncertain times in the world are causing significant issues for the local real estate market in Nanaimo, British Columbia.

Inflation and the increasing interest rates are the most significant contributors to the decline of the Nanaimo Real Estate Market in July. Inflation rose from 7.7% to 8.1%, which was a hard kick in the guts for both rich and poor. To combat inflation, the Bank of Canada (BOC) increased interest rates 100 base points, making the 5-year fixed rate 4.34%. This is nearly double what homebuyers paid at the beginning of 2022.

Inflation and increasing interest rates are creating an unbearable one-two punch for the finances of Islanders and Canadian citizens. The skyrocketing cost of fuel and food makes daily life very difficult for even the most affluent residents of Nanaimo. And if you’re unfortunate enough to have a variable rate mortgage, you can expect your monthly payments to increase and continue to do so for the foreseeable future.

What makes this infuriating is that these issues were self-inflicted. The Canadian Government is printing untold sums of money during the COVID pandemic to save the economy in 2020. This was predicted to create inflation rates unseen since the 1980s. Anyone with a basic understanding of economics was warned of this suicidal spending spree and was ridiculed for their alarmism. Now it seems that these warnings were correct.

Due to finical mismanagement on a country-wide scale, homeowners and buyers are feeling the pinch locally, which is reflected in the real estate statistics for July 2022 in Nanaimo.

Number of House Sales

5 years of sales data showing total homes sold in Nanaimo

The number of single-family homes sold in July 2022 has dropped by 68% from the preceding month to only 86 houses sold. This is nearly half compared to last year when 151 houses were sold in Nanaimo. Numbers this low have not been seen in over ten years. Homebuyers are uncertain and can afford much less due to the increasing mortgage rates.

Active Houses for Sale

past 5 years of data showing total amount of home for sale in Nanaimo

Active listings have spiked in July 2022, reaching 409 homes for sale. This is a 12% increase in available homes for sale in Nanaimo compared to the previous month. Although this number seems high, we are still in a housing supply shortage of which homebuyers in Nanaimo are very aware. But compared to July 2021, the housing supply in Nanaimo has increased by 220%.

Days on Market

Fiver years for sales data showing number of days to sell a home in Nanaimo

Home sellers in Nanaimo are waiting much longer, hoping to receive an acceptable offer on their house. On average, houses are waiting 25 days on the market, which is the highest in July for seven years. This doesn’t mean that homes are not selling quickly if they’re priced correctly, but many home sellers do not realize the days of getting multiple bids within 24 hours of listings their home is a thing of the past for now.

Original Price to Sale Price Ratio

5 years of sales data showing amount paid for homes compared to listings price in Nanaimo

Listings to sales price percentages show how much a home is sold for compared to the price initially listed on the MLS. In July, home sellers in Nanaimo, on average, only received 96.7% of the list price for their homes. This is roughly 2% below the average for July and a 12% drop from the peak in January 2022.

Median Sale Price

5 years of sales data showing median sale prices on houses in Nanaimo

Although the above reference statistics show a dramatic shift in real estate, median prices for single-family homes in Nanaimo seems to be levelling off. In July, the median price for a home in Nanaimo marginally dropped to $847,000 from $847,450. This is a $133,000 drop from January 2022 but a $47,000 increase from July 2021. For the past three months, prices have seemed to stabilize at around $850,000, this may continue to drop if mortgage rates rise any higher.

Where thing goes from here is anyone's guess. The two world superpowers are on edge due to a political visit to Taiwan by the 3rd most powerful politician in America, a new pandemic threatening the globe with a deadly virus, and inflation continuing out of control. Few people know where we’re going to end up in 2023. My advice is as follows: stay close to family, only worry about the things you can control, and make sure you are comfortable for the foreseeable future, as it may be sometime before things settle down.

Vancouver Island Community Videos

Oceanfront Property Guide

The top 5 factors to consider when purchasing a waterfront home in Nanaimo, British Columbia. Learn about the most crucial consideration for homebuyers when searching for a home on the east coast of Vancouver Island.

Nanaimo Housing Supply

Homebuyers' demand is outpacing the current housing supply in Nanaimo, British Columbia. The number of total homes for sale is typically lower during the winter months. But with spring approaching, more homes will be coming on the market as in previous years. Get prepared for the spring Real Estate market in Nanaimo with local Realtor, Scott Lissa.

Nanaimo Weather

The Four Seasons of Weather in Nanaimo are fantastic. My favourite time is Spring because it comes so early compared to the rest of Canada.

Hidden Costs of Living in Nanaimo

Your monthly expenses can add up fast on Vancouver Island. Many people don't anticipate the costs associated with owning a home on an Island in British Columbia. Learn more about the hidden costs of living in Nanaimo.

5 Annoying things about Nanaimo

Not everything is sunshine and roses here in Nanaimo, British Columbia. Check our list of five annoying things in Nanaimo that needs improvement.

Top 5 Reason to Relocate to Nanaimo

thinking about moving to Nanaimo? Check out our top 5 reasons that you'll love Nanaimo! Learn about Nanaimo weather, schools and school district 68, demographics and job opportunities.

Best Off-Leash Dog Parks in Nanaimo

Your dogs will love off-leash dog parks on sandy beaches in Nanaimo. Check out our video showing the top 3 off-leash and fenced dog parks in Nanaimo.

North Nanaimo vs. South Nanaimo

Are you having trouble deciding between north Nanaimo and South Nanaimo? FInd out the biggest differences between the north and south communities in Nanaimo, B.C.

South Jingle Pot Community Guide

Learn about the best areas of South Jingle Pot including College Heights, Westwood Lake, and East Wellington.

Cinnabar Valley Community Guide

Learn about Cinnabar and Chase River estate values, schools, parks, shopping and amenities.

Linley Point Community Guide

One of the top new communities in North Nanaimo, Linley Point, is found at the foot of Linley Valley/Cottle Lake Park. This affluent community has stunning new construction homes with suites that back onto large park areas filled with trails.

Lantzville Community Guide

A fantastic community of only 3500 people that's found just north of Nanaimo British Columbia. This community is becoming one of the top areas to move to on Vancouver Island.

Nanaimo River Guide

One of the best places to stay cool during the summer is the Nanaimo Rivier. Locals know the best location and secret swimming spots. Learn all about the fantastic location along the Nanaimo River.

Morrell Nature Sanctuary

See the Gnome Homes and Fairy Doors, and learn about the beautiful flora and fauna in Nanaimo's rainforests.

Qualicum Beach Community Guide

Learn about relocating to Qualicum Beach and all the fantastic things to do, such as the beaches, parks, and golf.

Jacks Point Biggs Park

A stunning park is found on a peninsula near the Duke Point Ferry in Nanaimo, British Columbia. Here you'll see petroglyphs, sandstone caves, and fantastic wildlife.

Rathtrevor Beach Park and Camping

Known as one of the most beautiful provincial parks in Canada, Rathtrevor Beach is an expansive park with walking trails, vast sandy beaches, and fantastic campsites just outside of Parksville, British Columbia.

Departure Bay Neighbourhood Guide

Are you looking for the perfect family neighbourhood in Nanaimo? Look no further than Departure Bay located in Central Nanaimo, British Columbia.

Air BnB Investment Property on Vancouver Island

Vancouver Island is one of the top tourist destinations in all of Canada. Millions of people visit this island every year from all over the globe. Because of this constant influx of tourists, people who operate short-term rentals through websites like Air BnB and VRBO make tens of thousands of dollars monthly off their rental spaces.

3 Best Nanaimo Farmers Markets

Nanaimo is famous for its fantastic farmer's markets that provide fresh, locally grown fruits, vegetables, and meats from Vancouver Island. Check out the top three farmers' markets here in Nanaimo, BC.

Shack Island

These shacks could be the most desirable real estate in Nanaimo. These brightly coloured fishing cabins, on Shack Island in the Hammon Bay neighbourhood of Nanaimo, British Columbia, Canada.

McNab's Corn Maze

The perfect Autumn family activity, McNab's Corn Maze and Pumpkin Patch. This tradition is where local families come to the McNab farm to enjoy a corn maze, hay rides, weenies roasts, and picking out pumpkins for Halloween.

Foreign Homebuyer Ban in Canada 2023

To cool the real estate market in Canada, the federal government instituted a ban on foreign homebuyers in Canada for two years starting in January 2023. This will have little or no effect on home prices as the issue is caused by low home supply.

Lake Cowichan Waterfront

Nearly 50 Acres of Lake Cowichan waterfront for sale on Vancouver Island. This spectacular piece of land has a beautiful waterway called Shaw Creek that carves its way through the forested lot.