Nanaimo real estate: 2014 Year in Review
Watching what goes on in the real estate world is always pretty interesting to me and this year has been more so than usual. For much of it I was too busy to put up much in the way of posts. If you are a regular to this blog you may have noticed that. Here is my current perspective of recent, current and likely future events.
I always say that anyone who tells you they know for sure what the future holds is either lying to you or lying to both you and themselves. No matter how deep your knowledge is on the topic, there is still a lot of unknown. That said, I do feel that predictions are possible and have their place, we just have to keep in mind that even the best ones are like a weather report: probably true, but not definitely true.
I have made a lot of comments on this blog about how the media is what creates the society wide moods that drive the markets. Now that the real estate market is starting to show signs of picking up again I believe it won’t be long before the media starts reporting that little bit of uptick and then people will start to jump on the bandwagon and sales/prices will start to take off in a meaningful way. Following the media isn’t the best way to make your real estate decisions if you ask me, but it is the major driving force so we have to contend with it.
It’s things like this, that once reported enough will change the mood of the market and tip the scales: Average sale prices in Nanaimo have gone up pretty steadily from $347,000 in April of 2013 to $368,000 last month. As I like to point out, average sale prices measure what people are spending on real estate not the actual value of real estate in the area. I have not seen real estate getting more expensive during this time. What I have seen however, is the inventory getting smaller and the inventory that is there is getting more bland. That is, the gems are gone quickly and not sitting around for a little while before selling like they were even a year ago. If the demand is reasonably stable, or increases, I think that this is a sign that things will be picking up price wise soon. I don’t think increases will be dramatic like we saw a few years back but there will be a new mood in the air.
What does this mean for the average homeowner? As I have said in many previous posts, what the market is doing is less important for the average home owner than they typically think. The people who are most directly affected by a change in the market are those of us who make a living building, selling or inspecting homes. If you’ve been waiting to sell and get out of the market or downsize, the market will be more forgiving. For Buyers it means they can’t be as picky as the decently priced individual properties will sell faster and what they have in mind criteria wise will gradually get more expensive. Is that good? Is that bad? Depends which cards you’re holding. These past few years have been a great time for buyers. It’s just that the economy was slow too so not that many people were able to afford Buying.
A more in depth look at these things here. Notice the timing of the series of posts, this was written while everyone was panicking back in 2008. The principles have not changed.
It’s the end of the year which is when I like to create a list of which posts I think are the most useful reads. Here is that list for 2014: