Nanaimo Real Estate Market Report November 2020

The average house price and the total number of sales in Nanaimo have increased again compared to November of last year, despite fewer homes on the market. Due to the dwindling number of available homes, the average days-on-market (DOM) to sell a house has decreased from 34 days to 24 days. 

Amid rising COVID infections, real estate in Nanaimo and on central Vancouver Island continues to be competitive for buyers as stock is low and demand is the highest it's ever been. Most homes are receiving multiple offers within days of going on the market and receiving over asking price with little or no subjects to the sale. 

Viewing homes has been congested due to the number of buyers requesting showings and the short time they have to view before offers are due for the seller's review. Scheduling open houses allows multiple buyers to view the home is the best method is to overcome this congestion. However, due to rising COVID cases in B.C., the Real Estate Council of British Columbia has requested no open houses. Though this makes buying homes more complicated, it has not deterred buyers. 

When the pandemic hit at the beginning of 2020, market forecasts for real estate were grim. The experts believed we would see price reductions in single-family houses due to a lack of demand that would be the beginning of the first downturn in real estate in 7 years. Not only have prices risen, but new booming markets have also ascended, such as the massive increase in buyers looking for homes on a private island between the Mainland and Vancouver Island. People are looking to enjoy life away from crowds and protected from COVID. 

COIVD has affected many and frightened us all, as we see the devastation to our friends, families, and fellow humans worldwide. But despite the pandemic, the people of Vancouver Island have a bright outlook for the future. This optimism is reflected by the unusually high amount of application received by Nanaimo, Saanich and Victoria. What's so unusual is this year, there are equal or more business applications received last year despite the pandemic. 

Optimism is also returning to the construction sector that saw heavy regulations and shutdowns during the beginning of COVID. Though still down over 15% from last year's numbers, construction has seen a 40% increase from the 2nd quarter of 2020. The increasing demand for permits means that investors see the growing demand for Vancouver Island, and it's poised to continue due to the housing shortage for rentals and sales. 

So what's in the highest demand for homebuyers in Nanaimo? The highest demand properties are single-story rancher style homes, which are very popular with seniors and individuals with diminished mobility. New construction homes, especially with additional accommodations like a suite, continue to sell fast buyers prefer to pay GST instead of Property Transfer Tax under $750,000. And finally, patio style townhomes in well maintained planned communities are being bought up by snowbirds that have had their wings clipped due to COVID travel restrictions.  

December will undoubtedly see continuing bidding wars over the last few properties that will be listed before the new year. December is a difficult month to facilitate real estate purchase due to notaries, lawyers, home inspectors, and other professionals taking holidays from mid-December to mid-January. If you plan to buy, make sure you contact your Realtor to confirm that the deal can occur during the holiday season. 

If you're planning on selling your home, it always helps to know the price range you can list your home for sale. Using a Current Market Analysis tool will help you calculate this price range by comparing your geographic address with similar homes for sale today. The best time to list your property is in Spring, which can approach quickly, so start planning today if you plan to sell in 2021.