January Newsletter 2012

January 2012 News Letter

Nanaimo Real Estate News Letter – by Jeff King

January 6, 2012

December 2011 Sales
Stats for Nanaimo

At time of release, there are currently 526 single family homes for sale in the Nanaimo area.  This number is down from November by 53 units.
This is a 40% drop in listings! Makes sense as a lot of people don’t want their homes on the market during the Christmas Holiday.  The average list price for homes in December was $350,000 compared to November’s list price of $390,000.  The selling prices however averaged $338,000 and $378,000 respectively.  With the figures being rounded to nearest $500 the prices are definitely down and sell prices are 7% down from last
month.

Prices were adjusted in November to reflect a couple of Luxury properties that skewed the numbers so we retain a 97% sell to list price ratio. There were 36 single family units sold in Nanaimo for the month of December down 53% from November’s 76 units.  The average number of days a home was on the market for the December sales was only 84 down from November’s 118.  Single family home sales for the end of the
year were scattered with North and South Nanaimo selling 7 and 6 units respectively, Departure Bay and Central both tied for third place with 4 units each.

As I’ve said before, I look at the sales data differently.  I look at when the purchase contract becomes subject free, not the date of  posession/completion. Once a property is subject free, it’s no longer available for sale i.e. SOLD!

According to VIREB’s stats, 2011 total single family sales were 1210 homes down from 2010′s 1246 units.  This past year looking at the graph the sales were up and down all year long with the biggest decline starting in October.  Last year had a really busy spring with a steady decline over the summer as the prices rose.  There was a spike in the late fall as the prices adjusted to where we are now.  Home prices remained fairly steady as compared to 2010 with a correction in midsummer and a mild increase in the fall.

For graphs and stats click here.

Mortgage Rates 

SMP Fixed Rates
1-Year – 2.39%
2-Year – 2.64%
3-Year – 2.89%
4-Year – 3.06% 45 day rate promo* 2.99%
5-Year – 3.06%

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

*Restrictions For Promotional Rates:
1. Owner occupied properties only
2. New business only (no rate drop for existing commitments)
3. Minimum beacon 660
4. Limited time offer, may be withdrawn anytime without notice

According to Kevin Decker, AMP from Mid – Island Mortgage & Savings Ltd. Nanaimo, “The word around the market place is they should remain low.  With bond yields being so low the spread is quite attractive for a rate drop but nobody has proceed quite yet. This is due to the uncertainty that bond yields will remain that low.  If they remain that low rates will decrease.”

If you have any mortgage questions call Kevin directly at 250-753-2242.

In the News

Local Pulp Mill, Harmac, is ready to start construction on a new, $45,000,000.00 electric generation plant.  The unused electricity produced by the mill will be used to power up to 17,000 Nanaimo homes under agreement with BC Hydro.  Construction will create 85 full time jobs for the projected 18 months till completion.

For more of the story, read article by Robert Barron of the Nanaimo Daily News here.

My Take

We have a booming start to the New Year with 58 new listings since the first of the month.

24 condos
27 single family
1 duplex
2 manufactured
3 lots
1 31 Acre Dairy farm

According to VIREB, 8 single family sales and 2 condos this past week.  However, I don’t like how the sales are reported.  When I do a physical search by date, there are 0 sales.

In English, the prices are down slightly from November and last December but the volume of homes sold dropped way off.  The good news is that the fourth quarter of 2011 was a lot better than the same quarter in 2010. With prices adjusting downward slightly and the increase of properties coming on the market I feel we’re in for a busy spring.  Sellers beware though!  You will be seeing a lot of competition coming on strongly, so if you are serious about selling don’t overprice your house.  It will cost you in the end.

I think it’ll be a buyers market for the most as inventories increase and the interest rates stay low over the next few months.

If you are thinking of selling your home I’d be happy to assist you in making sure you get the most for your home.  Should you be looking to move to the area I’d be happy to help you by providing more area information.  Just send me a quick email jeff@jeffkinghomes or call me 250-751-4902.

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