October 2022 Market Recap
OCTOBER 2022 MARKET STATS
We see the market start to stabilize. The posted sales in September saw prices move in a downward trend, and the volume was at a low of 49 single-family homes sold. October sales have rebounded back to a higher volume of 73 homes sold, many of these are a result of "subject to the sale" of another home were triggered and this leads us to have more homes sold.
We currently have 341 active single-family homes for sale in Nanaimo, compared to October 2018 when we had 335 active homes on November 1, 2018, and 380 single-family homes for sale in 2015. The market has an adequate number of homes leading into the winter months. As we get closer to December, that number will fall and that will lead to a demand for homes to buy in early 2023.
With out-of-town buyers still entering our market, because of our great climate, and retirees moving to our area (A new analysis of labour force survey data by the Canadian Centre for Policy Alternatives (CCPA) found that 73,000 more people retired in the year ending August 2022 compared to a year earlier, a jump of 32 per cent.), expect to see a steady number of sales throughout 2023.
The mortgage rates do affect home buyers directly, but most homeowners that bought prior to 2020 have quite a bit if equity as prices are still up 30%+ since that date, we are only seeing a real slowdown in entry-level priced homes, as this buyer typically have a lower downpayment and rates have pushed mortgage to be more than rent. The Bank of Canada rate will probably have one more bump later this year, or early 2023, and then hold steady until the end of 2023. At this point we should see rates come down.
If you need any information or would like clarification on any of these comments, please reach out anytime. We look forward to hearing from you.
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