Nanaimo Real Estate Market Report December 2020

The December 2020 Real Estate Statistics for Nanaimo Single-Detached Houses.

In December, the average sale price for a home reached the highest amount ever recorded in the Vancouver Island Real Estate Boards history for Nanaimo. Typically, the final month of the year sees slowing in the real estate market on Vancouver Island, but this was not the case in 2020. Coming to the end of the year, we need to look back at the beginning of 2020 to understand how we arrived at this record-setting year in Nanaimo Real Estate.

2020 has been a roller coaster of a year in Nanaimo, with speculation abound about what would happen to the real estate market due to the deadly occurrence of the COVID 19 Virus. The beginning of the year started relatively healthy, no pun intended, with sales prices of single-detached houses were selling for $544,000, $12,000 less than in 2019. This slight decrease is no cause for alarm and is expected with the brewing turmoil international at the beginning of the year.

The winter months of 2020 saw home sale prices hold slightly higher, but roughly the same as the previous year, which could be attributed to people beginning to panic due to the news of a potential pandemic. During January, February, and March, A flurry of predictions foretold that the real estate market would see a crash never before witnessed in modern times due to consumer fears and mass unemployment rates. Being cut-off in Nanaimo on Vancouver Island, we were unsure how this would affect us, but we assumed the worst.

During this time, homes were still selling relatively quickly, and many homeowners decided to take advantage and sell their homes despite the risks of letting strangers in during a pandemic. Realtors took all possible precautions to minimize physical contact when buyers were viewing homes. Mask, gloves, and hand sanitizer were required for all home showings. Buyers had to confirm in writing that they've not travelled in the preceding weeks and had shown no symptoms before entering a home.

Early in 2020, A trend started when an influx of relocation homebuyers from across Canada began to move to Central Vancouver Island. Many of these buyers stated they no longer needed to live in the city due to telecommuting and wanted a better life on the Island. Being the second biggest city on Vancouver Island and home prices being 25-50% less than in Victoria, Nanaimo was a good fit for many. Companies' necessity to continue operating through a pandemic facilitated this trend, and workers were taking advantage.

By the Spring of 2020, we started to use the term "new normal." Lock-downs were now a reality, and COVID cases began to spread across Canada. The harsh reality of the situation was being felt across communities as we began to spend more time indoors and working from home if we were lucky. We all made the best of the situation and were repeatedly told this would be ongoing for some time and would not know when a vaccine would be ready.

April, May and June were when things started to look different in the Real Estate Market. Home prices slowly began to climb from stagnation, and by June, a single-detached house average selling price reached $588,250. An increase of 6% over the average sale price in 2019. This was the turning point in the year and could primarily be attributed to Mortgages' lowered lending rates, which many homebuyers leveraged to their advantage.

By the Summer of 2020, we were better informed about what we were facing regarding COVID, thanks to the now-famous Doctor Bonnie Henry. Nanaimo saw very few cases due to the public's efforts, and we started to enjoy life with cautious optimism. Many of the restrictions were relaxed, more people visited Vancouver Island, and some decided to stay. Everyone wanted to have access to the beaches, forests, and mountains that locals enjoyed every day during lock-down while social distancing among nature.

As the heat rose in July, August, and September, so did the average sales price of single Detached homes in Nanaimo. Every month of summer 2020 saw house prices drastically higher than the previous year. In August, the average sale price was $640,000, $100,000 greater than in 2019. Everything was selling quickly, and this was when the supply of homes for sale was becoming extremely low. During this time, many of the homebuyers we're trying to purchase before a new school year, which could have attributed to these enormous price increases before September.

As Fall arrived on Vancouver Island, the sobering totals of deaths due to COIVD 19 kept Islanders vigilant as facemasks became universally adopted and required in all business in Nanaimo. With Halloween approaching, parents and children alike pondered how they would trick-or-treat, which many opted to forego due to safety concerns. Clusters of COVID cases were now occurring in schools, and it became apparent that we would not see loved ones in-person over Thanksgiving and Christmas.

Over the final months of 2020, Nanaimo continued to see exponential growth in single-detached houses' average sale price. October was 11%, November was 12%, and December was 13% higher than their respective months in 2019. December saw the highest average sale price per home in Nanaimo ever, reaching $646,000. Most sellers during these months received multiple offers driving the final sale price above the listing price.

Through this unprecedented year, we've experienced something that affected everyone in the world to varying degrees. Being in Nanaimo, we have experienced very few COIVD cases than the majority of Canada. This low case rate could have been one factor that drove so many buyers to relocate to Vancouver Island. Another factor could be that Snowbirds are no longer risking travel during winter to escape the cold, compounded by the travel restrictions.

Whatever combination of factors combined to create this record-setting year in 2020, we are thankful that the predictions of a market collapse for real estate didn't occur, and the complete opposite has happened. As we continue into 2021, dire predictions still loom, but more optimistic scenarios of continued growth in Real Estate have overtaken many nay-sayers gloomy predictions.

Many sure to see our market predictions for 2021 in the coming days. Real Estate in Nanaimo looks to continue on this upward trend, and there are many signs to support this occurring. Please make sure you tell us what you think will happen in the Real Estate Market in the comments below. Happy new year, everyone. Have a safe and healthy 2021.

In 2021, if you plan to sell your home in Nanaimo, please use our Current Market Analysis Tool to find the best sale price for your home. You can also search for the latest Real Estate in Nanaimo by following the link below. And, if you're not from Nanaimo, use our relocation guide to learn all about neighbourhoods, schools, parks, and so much more!