Written on March 31, 2015
Nanaimo Market Heats Up – Spring 2015
There has been a real change in the Nanaimo Real Estate Market in this past year.
Nanaimo home prices were slowing drifting down since 2008, and have now turned around and are steadily rising. Market values for homes have now recovered to pre-2008 levels. The average sale price of a single-family home in Nanaimo is up 5% from this time last year. The number of homes sold is also up 5%. Improved confidence in the economy, low interest rates and pent up demand have resulted in busy buyer activity.
In terms of inventory, (the number of homes available), Nanaimo is at a 10 year low. There are 12% fewer active listing compared to Feb. 2014.
The basic rule of supply and demand can be seen in action. Low supply and high demand is pushing prices up. Gradually we are moving from a Buyer’s market into more of a Seller’s market.
What does this mean for the Home Buyer?
There are many buyers out there – just watching and waiting for the right home to come on the market. It is important to have your Realtor put you on to a direct Private Client Services feed so that you can see new listings as soon as they hit the market. There is a 2-3 days delay before these listings reach the Realtor.ca website. When you are competing for a desirable home, you will have competition and a speedy response to a new listing can be crucial.
There is a higher likelihood of competing with other offers (multiple-offers). If this happens, then each buyer is asked to present their best offer and the Seller can choose to accept the best one, or negotiate an offer (but only one at a time).
When there is a possibility of multiple offers the Buyer needs to present as strong an offer as possible. An important aspect of this is having your financing fully pre-approved. This will allow a quick subject removal period which is attractive to Sellers.
Of course, a subject –free, cash offer is the most attractive offer to a Seller, but that is not always realistic or wise. It is particularly important, even as a cash buyer, to allow yourself time to have a thorough home inspection, so that you know exactly what you are buying. Having said that, Buyers in Vancouver are making subject-free offers every day because that is the only way to win a multiple offer. As our Nanaimo market heats up that will become more commonplace here too. Also, we have many Vancouver and Calgary Buyers competing for properties here in Nanaimo. They are used to a hot market and they can be challenging to compete with.
- Be prepared financially – Make sure you are fully pre-approved for financing so that you can make a strong offer.
- If you need to sell your home before Buying, you may need to go ahead and get your place on the market. Offers with a “Subject-to-Sale” clause are not attractive to Sellers in this faster market.
- Ask your Realtor about PCS, to see new listings sooner.
- Watch for new listings that suit your needs and ask your Realtor to book a showing without delay.
- When you see a house that meets your needs, make a quick and strong offer to avoid competition.
- Call or email Marie Burrows or Love Real Estate Group to guide you through the challenge of buying and/or selling your home.