Nanaimo Real Estate Market Report February 2021

$100,000 Increase in House Sale Price in Nanaimo in 28 days. 

The data for February 2021 is for house sale prices in Nanaimo, and if you bought a home one month ago, your home could be worth $100,000 more. In this untenable market, the shock to homebuyers makes the outlook grim, with fewer homes coming on the market than the previous year. Below you find the real estate stats for Nanaimo and surrounding communities based on monthly stats compared to last year.

Nanaimo has set another real estate record for the highest average sale price for six months in a row, now reaching $750,000 in February 2021. Starting in September 2020, home prices in Nanaimo reached $600,000, which was impressive given the issues caused by the pandemic. Over the following five months, home prices increase as winter approached, which is exceptionally uncommon given past market trends. Now in 2021, January's record price of $680,000 has been smashed, with sales prices increasing by 10% in just 28 days.

All of this activity in the real estate market has given regulators concern as prices seem to be spiralling out of control with no end in sight. Most blame this activity on opportunistic sellers and greedy realtors. However, housing demand is far outpacing the supply, with fewer homes being listed on the Vancouver Island Multiple Listings Service (VIREB & VREB). This lack of balance between supply and demand is reflected in the total active listings available on the market.

In February, Nanaimo had 150 new listings available on the MLS, which slightly increased from the month prior. However, this is still 57% fewer homes for sale when compared to February of 2020. The winter months are known for having fewer homes on the market than any other time of year. But, this is a meagre number when considering the current demand from homebuyers.

Typically, homebuyers have multiple options to consider, deciding on which home to buy the most difficult. But this is not the case in 2021. The lack of single-detached houses is the most significant driving factor in the sky-rocketing home prices in Nanaimo. Homebuyers are willing to pay absorbent sums of money due to the lack of options.

One thing I pride myself on is giving people adequate time to consider purchasing a home. Not being pressured allows a homebuyer to make an informed decision by completing their due diligence before moving forward with a home purchase. In today's market, the sellers are setting the time frame of all offers. This added pressure is causing homebuyers to make bold decisions that could end in tears if they're not careful.

This quickened pace is reflected in the average days on the market for single-family homes. In February 2021, a house only remained on the market for 11 days, four days fewer than the same month last year. This amount of time is insanely quick to make such a big decision. But many of these buyers have lost in multiple offers on numerous other properties making them very eager to "win on the next one". These two motivating factors are a dangerous combination. 

So what can homebuyers do to compete in Nanaimo's real estate market? Get informed.

1. Make sure your Realtor provides you weekly updates on listings with recently accepted offers, commonly referred to as pending listings. These pending will allow you to see the amount homes are going over the asking price.
2. Ask your Realtor to look at alternative options that you've not considered, such as different locations, house layouts, and ownership types. Broadening your search could lead you to your new home.
3. Get ready to compete. Nothing worth doing is easy.

If you'd like to learn more about getting prepared to compete in today's market, please don't hesitate to contact us at your leisure.