December News Letter

Nanaimo Real Estate News Letter – by Jeff King
December 3, 2011

November Sales Stats for Nanaimo

At time of release, there are currently 633 single family homes for sale in the Nanaimo area.  This number is down from last month by about 50 units.   Average list and sell prices are $455,262.75 and $446,238.24 98 respectively however, there are a couple of Million dollar + properties skewing the numbers.  If we remove these we get a better picture of $390,000 / $378,000 average list / sell figures.  The differential is a strong 97% of list price minus any fees making it back to the sellers’ pockets.

I look at the stats differently, I look at sales by the date in which the offer to purchase is accepted (subjects removed).  So, with respect to that, there were actually 51 single family units sold in the month of November, not the inflated 79 that’s found in the stats published by VIREB (which are on my site under Nanaimo Real Estate Statistics).  I believe my numbers are a more true reflection of the activity for the area! On that note, incase you were wondering, it took on average 88 days to sell and get these prices.

There are 1,390 properties listed for sale currently in the  Nanaimo area.

633 single family
23 half duplexes
369 condos
14 full duplexes (some have a great return on investment!) Call me if you’re interested in more info
95 Manufactured/mobile homes
1 farm
253 lots/acreage

This past week in the market there has been an increase in phone calls and activity.
Sngle family
33 new homes on the market
29 price reductions
0 sales

Condos
8 new listings
7 price reductions
0 sales

Lots
2 new
2 reductions
0 sales

The top three busiest neighbourhoods for November were

North Nanaimo – with 11/51 sales
Uplands and Central Nanaimo  – tied for second place with 5/51 each
South Nanaimo and Hammond Bay – tied for third with 4/1 each

The most expensive home sold for $3.1M in Upper Lantzville and least was $197,000 on 5th Street.

Current mortgage rates from our Sutton Member Program (SMP)

SMP Fixed Rates
1-Year – 2.49%
2-Year – 2.90%
3-Year – 2.89%
4-Year – 2.86%
5-Year – 3.16%

SMP Adjustable Rates
3-Year – 2.70%
5-Year – 2.70%

In the News

PST Exemptions Confirmed

BC’s transition back to a Goods and Services Tax (GST)/Provincial Sales Tax (PST) system is expected to be complete by March 31, 2013. When that happens, real estate commissions and new home sales will once again be exempt from the 7% PST, modestly improving affordability. BCREA received confirmation of these exemptions from Minister of Finance Kevin Falcon in early October.

Every year, the all-party Select Standing Committee on Finance and Government Services of the Legislative Assembly of BC conducts a budget consultation around the province. In mid-October, BCREA made a presentation to the committee, urging the provincial government to ensure that transition rules are clear and straightforward. The committee’s report quotes BCREA CEO Robert Laing in urging the government to reveal its transition plan quickly.

BCREA’s presentation also put forward recommendations to amend the structure of the Property Transfer Tax (PTT), which has remained the same since it was introduced in the late 1980s. BCREA believes that increasing the 1% PTT threshold to $525,000 (with 2% applying to the remainder of the selling price) and indexing that threshold annually would help restore tax fairness for BC homebuyers now and in the future. Information from BCREA.

Should you have any questions email me at jeff@jeffkinghomes.com.