After over twelve years of selling real estate in Nanaimo I can only call it one word in this market: MAYHEM! It's easy to get carried away by the hype when a market is as hot as the one we have witnessed in Nanaimo in 2016.

   Market values over a 12 month period from September 2015 are up 17.31% on single family homes in Nanaimo! The inventory shortage (see my last post) has resulted in multiple offers and bidding war scenarios being seen in unprecedented levels in Nanaimo. The frenzy has spread to condos which have been relatively flat in terms of growth for several years but have now seen an overall growth by 13.16% over 12 months. See VIREB's up to date September stats here

   Town homes and condo units sold has drastically increased over last year as a direct result of this single family mayhem! Isolated pockets of the city are seeing 20 and even 30% growth in overall market values in a period of 12 months!

   It's easy to see why many sellers are catching the fever, especially with many stories of wild over list price sale results circulating amongst homeowners. It is of paramount importance to remain objective and rational when pricing your home. To do this one must put themselves in the mind of the average buyer, and look to the facts in a recent market sampling. We are often very subjective or emotional when it comes to our dwellings. This will not help us decipher the true market value of our home.

• What will the average person think my home is worth?
• What other listings will I be competing with?
• What homes similar to mine have sold nearby recently?
• What economic or legislative factors are on the immediate horizon? (Think 15% foreign buyer tax in Vancouver)

The running theme for 2016 in the Nanaimo real estate market has been low inventory, which reached a critical, record setting low point in August, as extreme demand has placed continual pressure on the local real estate market supply. Sales activity in Single Family Homes and Condos were up a whopping 42 and 87 percent respectively while townhomes saw solid sales growth of 17% compared with August 2015 In fact due to this continual strong summer market, inventory reached a full 38% lower then the low in July of 2015!

Nanaimo region is seeing a perfect storm due to the expensive Vancouver and Victoria markets triggering people to look elsewhere, low interest rates, retiring baby boomers coming to the island from all over Canada, and probably the best climate and scenery mix when considering any other location in the country. Continued record tourism seasons, and social media word of mouth have only put further focus onto the Nanaimo region which is still a relative discount compared to other local housing options.

August is usually a month where real estate sales tend to slowdown, but as inventory and demand have been so extremely polarizing, a very fast paced and active August was the result. See the full VIREB report for August HERE .

Buyers are effectively getting outbid, or outpaced in the competitive hunt for their ideal home. Sellers have a real opportunity to attract top dollars with the right property but also need very clear perspective and expectations regardless of the market pace. If you price too high, you will waste your time and potentially your opportunity to capitalize. You need a local expert in your corner with a proven track history of meeting and exceeding their clients' goals in a buying atmosphere that we are probably going to see extend into 2017. I look to continue to provide my expertise and determination for buyers and sellers in this extremely fast paced market. Let me be the difference in your corner! Contact me anytime, and we can get to work in your quest to buy or sell.

All My Best,

Rick Horsland