November News Letter

Nanaimo Real Estate News Letter – by Jeff King
November 2, 2011

October Sales Stats for Nanaimo
There are 684 single family homes currently on the market in the Nanaimo.  The average price has increased over same month last year by 5% to $356,307.40 from $338,374.  This figure, although up from the same time period last year; the 12 month to date is still down 1%.

With the interest rates staying low and the cost of construction reasonable sales volume increased 28% over last October.  However, VIREB reports say that sales volume is on par with last month remaining at 95 units.

The total number of properties listed in Nanaimo are 1,331 properties.  Broken down, this figure translates as follows:

684 Single Family
23 half duplex avg price $299
358 condos $264
12 full duplex
2 four plex
89 manufactured/mobile avg price $110
163 lots/acreage avg price low $200k

The top three selling neighbourhoods in Nanaimo for the past month are:

North Nanaimo – 14 units reported sold
Departure Bay – 10 units reported sold
University District – 9 units reported sold

Note that these figures cover all property types and make up almost one third of all sales.

This past week in the local Housing market there has been a bit of activity but NO sales, 68 new property listings and 31 price changes.
Lots for the week October 27, 2011 to November 2, 2011
- 8 new on the market
- 2 back on the market
- 3 price changes (reductions)

Condos for the week October 27, 2011 to November 2, 2011
- 22 new on the market
- 4 price reductions

Single Family for the week October 27, 2011 to November 2, 2011
- 33 new homes on the market
- 6 back on the market
- 23 price reductions

Around town – With the election for council upcoming in a couple of weeks, the $36.5 million low-barrier housing project for Uplands road is put on the hotplate.  Those running for seats on Council are divided over the project.  This has quickly become a steamy issue.  Current mayor, John Ruttan is not backing down sticking to his view that the policy is a fair one.

Current Mortgage Rates through our Sutton Member Program (SMP)

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

SMP Adjustable Rates:
3-Year Variable/Closed: 2.70%
5-Year Variable/Closed: 2.70%

The Sutton Member Program Advantage: Work with a Sutton REALTOR® and you may qualify for ultra-low 1 to 5 year mortgage rates.

In the NEWS
Provided for Realtors by Cameron Muir, Chief Economist for BCREA

Bank of Canada Interest Rate Announcement – October 25, 2011

As was universally anticipated, the Bank of Canada opted to hold its target overnight rate at 1 per cent this morning.  Ongoing uncertainty in the Euro-zone continues to weigh heavily on the Bank’s outlook. In its statement accompanying the interest rate decision, it was noted that the bank is now projecting a contained Euro-crisis, but also a brief recession in the Euro-area due to ongoing de-leveraging and fiscal austerity. The Bank also expects continued weakness, but no recession, in the United States through the first half of 2012 before a resumption of stronger growth. Given various challenges in the global economy, the Bank of Canada trimmed its outlook for Canadian economic growth to 2.1 per cent in 2011, 1.9 per cent in 2012 and 2.9 per cent in 2013 which is in line with our own forecast. On inflation, the Bank now expects slack in the economy to persist longer than originally forecast, leading to a closing of the output gap at the end of 2013. This implies softer than expected inflation in coming quarters, with consumer price growth moderating before returning to the Bank’s 2 per cent target by the end of 2013.

Overall, this morning’s statement shows a very cautious Bank of Canada that is unlikely to make any significant movements on interest rates over the next two to three quarters. Further monetary tightening will be highly contingent on a brighter growth outlook in the United States and a credible solution to the Euro sovereign debt crisis. Therefore we expect the Bank of Canada to remain on the sidelines through the end of 2011 and the first half of 2012.

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