Written on Octber 5, 2017
In Nanaimo real estate we have been experiencing a strong Seller’s market for the past 3 years. Rising prices and multiple offers have been a constant challenge for Buyers and a bonus for Sellers. Along with the frantic pace, both Buyers and Sellers have been experiencing a lot of stress. The time pressure experienced by Buyers has caused some to make offers that they could not follow through with. At one point we were finding that, across the market, a full third of contracts were failing due to lack of financing, low appraisal rates and, for some, just cold feet. Hasty decisions are not good for anyone.
There is a change in the wind. The market statistics as well as our everyday experience in the marketplace show that, for the 1st time in years, there are more homes being listed than have sold. The biggest problem that we have faced in this Seller’s market has been lack of inventory. In August we saw that shift, with more listings on the market and fewer sales. The average sale price was still up and the number of days on market was down, but in time, higher inventory and lower demand will bring balance to the market.
We are not anticipating a drastic drop in prices, just a cooling of the pace and levelling off of prices. So far, this is being felt most in the higher priced properties. There is still a lot of competition for the $300-600,000 priced properties.
In fact, there is a lot of demand from across the country for properties under $600,000 homes in “fair weather cities”. That’s us! Nanaimo is one of the few fair weather Canadian cities with average sale prices under $600,000. This will keep up buyer demand for the future.
We seem to be heading into a more balanced market where the pressure is equalized between Buyers and Sellers. This will be a healthier market for all sides, resulting in deals that are based on solid financing and thoughtful decision-making.
If you are thinking of buying or selling your home, now is an excellent time. Please call us for a no-obligation consultation.
Love Real Estate Group, Marie Burrows *PREC & Lisa Martin – The Love Real Estate Group We@LoveRealEstate.ca