Nanaimo Real Estate Market Report: June 2019
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NANAIMO – Weak housing market doesn’t seem to be going anywhere.
Sales of single-family homes in Nanaimo went slightly up by 3.7% compared to June 2018 but saw a 17% decrease from May 2019. The average sale price of single-family homes decreased for the first time in 2019. It went from $593,326 in May 2019 to $580,330.
The mortgage test or Guideline B-20 is making a big impact in Vancouver Island despite thoughts it would be more sheltered due to the tendency of older buyers. Despite the British Columbia economy being supportive of housing demand, the affordability to purchasing power gap and the mortgage test is making it incredibly difficult for millennial or first time buyers to get into the real estate market. Despite having income to afford monthly payments, they are unable to qualify due to Guideline B-20 eroding their purchasing power.
Weaker housing demand is contributing to an increase in total active listings across the province. In Vancouver Island, inventory of single-family homes in June rose by 20% from one year ago. Active apartment listings also climbed by 14% over a year ago. The big story teller here is the townhouse inventory which decreased by 3% from last year and can be tied to the affordability erosion.
