Average Home Selling Under Asking Price for First Time in 18 Months
What Does the Sale to List Ratio Mean for the Nanaimo Housing Market?
The average sale to list ratio for the month of June was 99.56% versus 103.25% for June of 2021. This statistic shows the relation of the average listing in the Nanaimo real estate markets sale price compared against the listing price. In the Nanaimo market since December of 2020, this number has been over 100%. When this number is over 100% it means that a property is selling for over the listed price which hasn't been uncommon when property sales are going into multiple offers.
This statistic doesn't signal a cool down in the Nanaimo real estate market when you compare 2022 to 2021. In 2021 this ratio was 103.25% across 174 active listings for the month. The numbers for this year are based on 235 listings. This represents that part of this number decreasing is in part due to increased inventory. This increase in supply contributes to lowering the ratio by adding more options for homebuyers and there have been fewer multiple offer situations. This isn't to say that these have gone away completely, but that they are now happening on a fewer percentage of listings.
This increase in supply also contributes to a longer selling time for properties. In May of 2022, the average days on market was 17, where June saw and average days on market of 21. It's important to keep in mind that the average days on market includes the time it takes to remove subjects. When there was less inventory and more multiple offers, there was an increase in the amount of subject free offers on properties which creates a shorter days on market for those properties. When more buyers are writing offers with subjects this creates a longer days on market with the average subject removal period being 14 days from the time of the accepted offer. Along with offers with subjects being increased from may to June, there has also been an increase in the number of listings that have decreased their price or the listing has expired. This demonstrates that buyers have the ability to be more selective in their purchases with increased inventory.
What is Effecting Nanaimo Home Prices?
Another change in the Nanaimo real estate market was a further decrease in the average sale price from May. The average sale price single family detached homes in Nanaimo for June was $883,038. This can be attributed to more home buyers qualifying for mortgages at higher interest rates than in previous months with Bank of Canada interest rate increases. This has shifted the affordability of the housing market and has been slower than some predictions due to 120 day rate guarantees offered to buyers when they start the mortgage preapproval process.
With over 29 years of experience guiding buyers and sellers through every kind of housing market in Nanaimo, make sure that you speak with the team at Gillette & Associates whether you are buying, or selling your Nanaimo Home!