What Happens Next to Home Prices

What Happens Next to Home Prices?

Since 1981, prices have posted monthly year-over-year increases of 20% or more 46 times! An acceleration in prices is generally followed by a reversion of growth back to its long-run average within 12 months.  In a number of periods, price growth has turned negative within 24 months, though generally following a significant external shock. So what does this mean and what happens next to home prices?

Home prices

In BCREA’s issue of Market Intelligence, they look to past periods of accelerating prices for answers. This report is an analysis and not a forecast. Read further for the examination of what trajectory home prices have typically followed after previous periods of rapid acceleration.

2016

The year started with home prices posting 30 per cent year-over-year increases, which moderated to 16.5 per cent by May.

Most periods of price acceleration were followed by a gradual moderation of price growth within 12 months. In two of the historical periods, price growth turned negative in the 12 months following a rapid acceleration. However, these periods coincided with an idiosyncratic or external shock, such as the leaky condo crisis of the mid to late 1990s, recessions or a tightening of monetary or macroprudential policy.

Using history as a guide to what comes next for the Vancouver housing market, one would expect that without a major economic shock or significant change in housing policy, that conventional market dynamics of supply and demand will take hold and growth in home prices will likely trend lower over the next 12 months.

Continue reading

2015 Buyer Demographics

The Vancouver Island Real Estate Board (VIREB) put together a buyer profile. Check out what the buyer demographics, North of Victoria, are for 2015.

Buyers Infographic June 2016 VIREB c

Data and infographic provided by VIREB provides us with a snapshot of what the buyer demographics looked like in 2015.

If you would like more information from our local experts please call (250) 751-1223 to speak to one of our knowledgable REALTORS®.

Upcoming Summer Events in Nanaimo 2016

Upcoming Summer Events in Nanaimo 2016

Summer is a busy time anywhere, but especially in our own harbour city. Kids are out of school, the sun is shining (most of the time) and everyone is ready to have some fun. Listed below are some fun, upcoming summer events in Nanaimo for the whole family to enjoy.

Summer events in Nanaimo

  • Multicultural Festival

Hosted by the Downtown Business Improvement Association, this festival happens on Wesley Street in the Old City Quarter in June. A one-day street party complete with food, dance and music, this festival celebrates the diversity of our community. Check here for more information on the Downtown Business Association (DNBIA).

  • Bathtub Days Street Fair

The Bathtub Races are a main event in Nanaimo, with large historical importance for the city. The Marine Festival and Bathtub Races occur in July, and are a local spectacle to behold. The street fair occurs at the same time, closing the traffic on Commercial Street for a parade, music and more fun activities.

  • Nanaimo Dog Show

The Nanaimo Kennel Club hosts its annual dog show at Beban Park on June 18-19. Drop in to watch the various contests and preparation, including grooming and agility courses. For more information about the Nanaimo Kennel Club check here

  • Canada Day Celebrations

July 1st is Canada Day, and everyone will be out celebrating. On July 1st at Maffeo Sutton Park, Nanaimo will be celebrating with music, food, entertainment and other family events.

  • Silly Boat Regatta

The 2016 Silly Boat Regatta will be held on July 17th at Maffeo Sutton Park. This event is a fundraiser for the Nanaimo Child Development Centre. Starting at 8 a.m. participants have four hours to assemble a floating device of extreme silliness. For more information about the importance of the Child Development Centre in Nanaimo click here.

  • Dragon Boat Festival

The 2016 Nanaimo DragonBoat Festival will be held from July 8-10. This major event includes more than 80 teams and attracts around 30,000 people. Go out to cheer on the teams and also help support the Nanaimo and District Hospital Foundation.

  • Vancouver Island Exhibition

Starting in the late summer on August 19th at Beban Park fairgrounds, this exhibition draws crowds of people from all over Vancouver Island to celebrate Nanaimo’s annual agricultural fair with carnival rides, games, music and the anticipated livestock exhibition.

  • Blues Festival

This music festival happens in August in Maffeo Sutton Park, and highlights musical talent from across Canada and the U.S.

  • Farmers’ Market

There are many farmers’ markets across Vancouver Island, but the one closest to Nanaimo is the Bastion Waterfront Market, open May to October on Fridays from 2-6 p.m.  Take off an afternoon to browse for fresh local produce, food and artistic crafts. 

If you live in Nanaimo, choose some events to attend with your community. If you don’t live in Nanaimo come and see what it’s like to live here and get to know our community.

For more information on Nanaimo events, check out http://www.tourismnanaimo.com/event-listing

 

Inventory Shrinks in Nanaimo Market Update

Prices Climb and Inventory Shrinks in Nanaimo

The tale of the tape in the Real Estate Market is that prices climb and inventory shrinks in Nanaimo and area. To put things into perspective, here is a month over month comparison for May.

May 2016 vs. May 2015 Change

  • Units Listed:
    • May 201 = 245
    • May 2016 = 275 a 12% increase
  • Units Sold:
    • May 2015 = 150
    • May 2016 = 210 a 40% increase
  • Avg Sell Price:
    • May 2015 = $399k
    • May 2016 = $451k a 13% increase
  • Active Listings:
    • May 2015 = 463
    • May 2016 = 310 a -33% decrease

Inventory Shrinks in Nanaimo

Although more homes were listed, the active inventory has dropped substantially.  Prices are still going up, but certainly not like we’ve seen in the likes of Victoria or Vancouver.  Nanaimo continues to be a desirable community, offering excellent services and facilities, and is a great place to live, work and play. All this for a fraction of the cost of other West Coast cities.

Cameron Muir, BCREA Chief Economist, states that retail sales growth in the double digits reflects high levels of consumer confidence, which is spilling over into real estate. Tourism on Vancouver Island also posted a huge spike recently, which aids local economic conditions. However, although housing demand is extraordinarily high, its foundation is solidly based on a healthy GDP and rising population growth.

Please contact one of our REALTORS® whether you’re Buying or Selling, to have the RIGHT strategy not just to get your home sold for the most amount of money, but to be sure you can find your perfect new home in an ultra-competitive market.

For the full local Real Estate Market Update from VIREB click here

 

 

USA National Housing Report

USA National Housing Report May 2016

The Canadian market is influenced by the the currency and real estate in the United States. It appears that as a nation, the 2016 home-buying season has just started. That is quite different than our local market which saw an early start to the home-buying season. Find out from the USA National Housing Report for May 2016.

USA National Housing Report

RE/MAX corporate puts out a monthly report summarizing the National market activity. Read the details on what’s happening to our friends in other markets across the Boarder.

April sales saw a 7.5% increase over March and a 3.2% rise over April last year, which nearly matches the average year-over-year sales increase of 4.3% so far in 2016. The Median Sales Price in April was $215,000, which was 5.4% higher than one year ago and 7.5% above the median price in March. The inventory of homes for sale remains very tight in many markets across the country, with the April inventory 15.2% lower than April 2015. At the rate of home sales in April, the national Months Supply of Inventory was 3.2, down from 3.7 in March.

“Even though inventory remained tight, April still saw a demand for homes at a level higher than one year ago. Homebuyers realize that interest rates are historically low and mortgage accessibility appears to be improving along with the overall economy. Price increases make it possible for homeowners to feel comfortable selling, but they aren’t at a level that keeps first-time buyers out of the market,” said Dave Liniger, RE/MAX CEO, Chairman of the Board and Co-Founder.

“The steady annual increase in home values shows sustainable growth and an improving economy. We always look for gains to be similar to inflationary growth while avoiding the hikes that could lead to bubble fears. We’re currently in that range, which should come as a more comforting sign to many homeowners,” added Bob Walters, Quicken Loans, Chief Economist.

Closed Transactions – Year-over-year change
In the 53 metro areas surveyed in April, the average number of home sales was 3.2% higher than one year ago, and was 7.5% higher than the previous month. The sequential monthly increase was in line with the 6.8% average seen over the last seven years. Like February and March, home sales continued to be strong the Northeast. Across the nation in April, 34 of the 53 metro areas surveyed reported home sales higher than one year ago, with 16 experiencing double-digit increases, including Hartford, CT +27.4%, Providence, RI +27.1%, Augusta, ME +23.4%, Manchester, NH +22.3%, Boston, MA +21.1% and Tulsa, OK +16.2%.

Median Sales Price – Median of 53 metro median prices
The Median Sales Price in April was $215,000, up 7.5% from March, and up 5.4% from the Median Sales Price in April 2015. April is the 51st consecutive month without a drop in price from the previous year. In 2015, the monthly average of year-over-year price increases was 7.6%. The 5.4% rise in April may mark a moderation in price increases, which would have a positive impact on home affordability. Among the 53 metro areas surveyed in April, only two had a year-over-year drop in prices, Tulsa, OK -2.7% and Trenton, NJ -0.4%. The remaining 51 metros reported higher prices than last year, with 11 rising by double-digit percentages, including Providence, RI +17.5%, Portland, OR +15.5%, Boise, ID +13.5%, Fargo, ND +12.5%, Nashville, TN +11.7% and Burlington, VT +11.4%.

Days on Market – Average of 53 metro areas
The average Days on Market for all homes sold in April was 64, down 7 days from the average of 71 in both March and April 2015. April becomes the 37th consecutive month with a Days on Market average of 80 or less. In the three markets with the lowest inventory supply – San Francisco, Denver and Seattle – Days on Market was 23, 27 and 32 respectively. The highest Days on Market averages were seen in Augusta, ME 159, Des Moines, IA 110 and Burlington, VT 108. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Month’s Supply of Inventory – Average of 53 metro areas
The number of homes for sale in April was just 0.2% lower than in March, but 15.2% lower than in April 2015. The average loss of inventory on a year-over-year basis in 2015 was 12.2%. While inventory remains much lower than last year, there are signs of stabilization month-to-month. Based on the rate of home sales in April, the Month’s Supply of Inventory was 3.2, which is nearly identical to last month and last year, 3.7 and 3.6 respectively. A 6.0 month’s supply indicates a market balanced equally between buyers and sellers. The number of metros with a month’s supply below 2 has jumped significantly. While January and February saw 5 and 6 metros below 2, March and April both reported 11 metros with a supply less than 2 months. Those with the lowest Month’s Supply are Denver, CO 1.1, Seattle, WA 1.1, San Francisco, CA 1.2, Omaha, NE 1.2, Portland, OR 1.3 and Dallas-Ft. Worth, TX 1.6.

Contact
For specific data in this report or to request an interview, please contact (303) 796-3405 or [email protected].

About the RE/MAX Network: RE/MAX was founded in 1973 with over 100,000 agents provide RE/MAX a global reach of nearly 100 countries. Nobody sells more real estate than RE/MAX, when measured by residential transaction sides.

RE/MAX, LLC, one of the world’s leading franchisors of real estate brokerage services, is a wholly-owned subsidiary of RMCO, LLC, which is controlled and managed by RE/MAX Holdings, Inc. (NYSE:RMAX).

For more information about RE/MAX, to search home listings or find an agent in your community, please visit www.remax.com. For the latest news about RE/MAX, please visit www.remax.com/newsroom.

Description
The RE/MAX National Housing Report is distributed each month on or about the 15th. The first Report was distributed in August 2008. The Report is based on MLS data in approximately 53 metropolitan areas, includes all residential property types, and is not annualized. For maximum representation, many of the largest metro areas in the country are represented, and an attempt is made to include at least one metro from each state. Metro area definitions include the specific counties established by the U.S. Government’s Office of Management and Budget, with some exceptions.

At RE/MAX Corporate as well as RE/MAX of Nanaimo, we have a passion for our communities in which its agents live and work. RE/MAX USA is proud to have raised more than $150 million for Children’s Miracle Network Hospitals® and other charities. 

For more information about our local market call us at (250) 751-1223, come and visit us at 1-5140 Metral Drive or check out listings on our website.

Real Estate Market in Nanaimo

Market Update: Very Busy Real Estate Market in Nanaimo

We are in a very robust Real Estate Market, with high market activity that hasn’t been seen in over a decade. Our local market is different than what you see on the news in Vancouver or Toronto, but nonetheless, it is a VERY busy real estate market in Nanaimo for those buying and selling homes.

Buying demand

We can never be totally certain of what is driving demand among buyers. The number of homes listed in April is up 6% over the same month last year, but with the number of units reported sold up 27%, buyers are feeling frantic. The average sell price per unit last month was also up 13% over April of 2015.

A busy real estate market in Nanaimo

The real estate market comes down to supply and demand. There is a limited supply of new and existing homes for sale in the Nanaimo market, and there are more Buyers than there are homes available. Because of this, prices and sales go up. As a Buyer right now, you need to be on top of your market segment, watching the new listings and communicating with your REALTOR®. Your REALTOR® is going to give you the knowledge needed to be involved in “Multiple Offer” scenarios, so do your research and follow their advice. With the help of your REALTOR®, you could come out on top. Stay focused and know what you want.

Tips for sellers

As a Seller, you should be strategizing the best position for you in this busy market. It’s great to sell, and possibly for even more money than you originally thought, but there are still some challenges.  Do you have a new home to go to?  You are stuck with the same challenge as any buyer, competing for the home you want.  Have you taken your REALTORS® advice and priced your home well?  Houses that are overpriced will continue to sit on the market even in the best markets.  You have to be priced well to succeed. 

Thinking about buying an investment property?

RE/MAX of Nanaimo Property Management department has rented all of our inventory! Do you have a suite, condo or home that you would like to be rented?

We’ve rented every one of our rental properties and we need more! We have tenants looking for the right home to rent and we have nothing for them to rent. Put us to work for you and get your rental investment rented! Call us today at (250) 751-1223.

Have a chat with one of the market’s best REALTORS® at Nanaimo’s Best Real Estate Office, RE/MAX of Nanaimo at (250) 751-1223 or find more stats on VIREB.

Ride-for-the-Kids

Calling All Cyclists! RE/MAX Ride For The Kids

Calling all cyclists!

Are you an novice or avid cyclist looking for a cause to support or want to be part of raising funds for sick kids? June 18, 2016 ride with us for the kids!

Ride for the kids

Join us on a 100 km free Charity Ride from RE/MAX of Nanaimo through Nanaimo, Nanaimo River, Cedar & Yellow Point benefiting the kids at BC CHildren’s Hospital. Please note: we will have a staggered start, this is not a race.

Brian Godfrey has recently retired in order to go on another cycling adventure. In 2013, Brian and his friend Bob, completed their first fundraising cycling adventure, which helped raise $25,000 for BC Children’s Hospital with the help of fellow realtors at RE/MAX of Nanaimo. He hopes to raise the same fundraising goal this year. Donate here!

Come solo or register a team! 

Real Estate Market Update

Real Estate Buying Demand Outpaces Nanaimo Supply

The real estate buying demand has outpaced availability in most areas. VIREB covers current market trends on central Vancouver Island this March. Currently it’s a seller’s market, where top price and a fast sale can go hand-in-hand.

Real estate buying demand increases

In March 2016 520 single-family homes were sold, compared to the 420 homes sold last March, which resulted in an increase of 24 per cent. Month over month, sales were up by 29 percent from the 406 sales processed in February 2016. Last month’s active listings totalled 1,599, down 26 percent from the 2,167 reported in March 2015.

It turns out that British Columbia’s economy is the strongest in Canada, according to BCREA Economist Brendon Ogmundson. The GDP growth is expected to be around 3 percent this year. The construction and retail sales industries are key economic drivers fuelling this robust real estate market and but there are also signs of it slowing down.

Single-family homes are still the most popular property type, although changing demographics could shift that trend over the next decade.

Demand has outpaced availability

It has been several years since REALTORS® have been this busy!  The challenge now – low inventory.

“Our REALTORS® are scrambling to find homes for buyers, which is resulting in multiple offers, particularly on single-family homes. Inventory is low. If you’ve been thinking of selling, it’s a perfect time to put your home on the market,”” says Justus Edmundson, Managing Broker at RE/MAX of Nanaimo.

Nanaimo’s market is still very affordable in comparison to Victoria and the lower mainland communities.

View the March 2016 benchmark prices of single-family homes in the following areas:

  • Nanaimo’s benchmark price rose 5.95 percent to $367,000
  • Parksville-Qualicum area saw its benchmark price rise by 8.66 percent to $391,400
  • Port Alberni was $193,900, an increase of 3.36 percent over March 2015.
  • Comox Valley, the benchmark price was $354,100, up 9.39 percent from 2015
  • Campbell River area was $281,800, a 2.61 percent increase over 2015
  • Duncan reported a benchmark price of $310,700, an increase of 8.23 percent over the same month in 2015 

Source: VIREB

For more information about buying or selling your house in this hot market, contact one of our professional and knowledgeable REALTORS®. Call (250) 751-1223 today!

JOB POSTING: Real Estate Conveyancer

JOB POSTING: Real Estate Conveyancer

RE/MAX of Nanaimo is currently looking for a permanent, full time Real Estate Conveyancer. The individual will be responsible for maintaining and managing all conveyance duties in a real estate office.

Real Estate Conveyancer duties

The candidate must be a motivated self-starter able to work with little supervision and within a team environment.  Organized, strong attention to detail with efficient follow-up skills.  Must also possess a keen sense of customer service, ability to multi-task and handle a fast-paced work environment.  Real estate experience is preferred.

Requirements

  • Minimum 2 year experience in an office administration role
  • Motivated person, who can multi-task
  • Ability to problem-solve, excellent attention to detail and highly-organized
  • Professional standards with impeccable phone mannerisms
  • Experience with a multi-line phone system

Skills & programs:

  • Lone Wolf
  • Dropbox
  • Microsoft Office
  • PC

If you know someone who would enjoy working for a thriving Real Estate brokerage here in Nanaimo please share this post with them. Your share on social media is the greatest compliment to us!

All enquiries, please reply to [email protected]

About RE/MAX of Nanaimo

Here at RE/MAX of Nanaimo, we have established an atmosphere of excellence, productivity and service. At RE/MAX of Nanaimo we value being proactive and responsive to the needs of our community and as such, RE/MAX of Nanaimo is recognized as one of the finest real estate companies on Vancouver Island.

Company highlights

  • July 2007: RE/MAX of Nanaimo was purchased by the current owners: Charlie Parker, Mike Heinrich, and Graeme Parker.
  • 2007 – 2016: Vancouver Island Real Estate Board Sales Participation.
  • 2012 – 2013: RE/MAX of Nanaimo completed a full renovation to create a modern and updated look. This included an expanded office space to welcome new REALTORS® to RE/MAX of Nanaimo.
  • 2014: A RE/MAX University training center was established in the office complex, offering full education and training opportunities for the REALTORS®.
  • 2016: RE/MAX of Nanaimo won RE/MAX Brokerage of the Year in their region, Western Canada, and Brokerage of the Year for RE/MAX Canada

 

Bank of Canada Interest Rate Announcement - March 9, 2016

Bank of Canada Interest Rate Announcement – March 9, 2016

Interest rates are an important factor when buying or selling Real Estate. Below is an announcement from the Bank of Canada regarding interest rates.

Bank of Canada Interest Rate Announcement – March 9, 2016

The Bank of Canada announced this morning that it is maintaining its overnight rate at 0.5 per cent. In the press release accompanying the decision, the Bank noted that inflation is evolving as anticipated but that a weak economy will continue to dampen growth in consumer prices. Overall, the Bank judges that risks in the economy are roughly balanced, though financial vulnerabilities have increased due to falling commodity prices.

With inflation trending close to target while the economy struggles, the Bank of Canada, whose mandate is to target 2 per cent inflation over the medium run, has to strike a fairly delicate balance. Low oil prices continue to vex the Canadian economy spurring job losses in energy producing provinces while also putting downward pressure on the exchange rate, which makes the cost of imported goods from heavy machinery to fresh produce more expensive.  We expect that weak economic growth will continue in the first quarter of 2016, but the possibility of an effective fiscal stimulus, a stronger US economy and a stabilization of oil prices points to stronger growth ahead.  The door remains open for the Bank of Canada to reduce rates once more in 2016, though our expectation is that the Bank will remain on the sidelines throughout the year. 
For more information, please contact:

– Cameron Muir, Chief Economist – (604) 742-2780 or Email: [email protected]

If you’re looking to buy a home or sell your current home, contact us at (250) 751-1223. We have over 100 REALTORS® that may have the perfect home or buyer for you!