Nanaimo, BC

While higher housing values and tight inventory levels have hampered home-buying activity so far this year, longer amortization periods and alternative housing types have offset the impact on most major markets across the country, according to a report released today by RE/MAX.

Despite a higher degree of frustration in the marketplace than in previous years, the RE/MAX Affordability Report found that first-time buyers, in particular, remain steadfast in their determination to purchase a home. In fact, entry-level purchasers are adjusting their expectations by sacrificing size, location, and even long-term financial freedom, to overcome challenges such as rising prices and serious supply issues. Innovative financing has become key to homeownership in today's environment - with longer amortization periods gaining favour in 62 per cent of the major centres surveyed. Low or no down payments were popular with first-time buyers in 38 per cent of markets.

First-time purchasers continue to play a pivotal role at both a local and national level. The impact they have on the housing market is significant, as they are the impetus for sales in the mid-to-upper price ranges. As long as this segment of the market remains healthy, the real estate outlook will continue to be favourable.

Inventory levels, however, remain one of the foremost concerns facing purchasers across the country. A shortage of available entry-level product was identified as a major obstacle impeding buyer intentions in three-quarters of markets surveyed in the report, including St. John's, Moncton, Fredericton, Halifax-Dartmouth, Ottawa, Greater Toronto Area, Hamilton-Burlington, Niagara Falls, Winnipeg, Regina, Saskatoon, Greater Vancouver, Victoria and Kelowna.

Doom and gloom reports coming from south of the border have yet to hinder overall momentum. First-time buyers are still leading the charge, taking advantage of every resource available to achieve homeownership. They're determined to get into the market sooner rather than later. If suburban locations, smaller condominiums and town homes, or a little sweat equity is what it takes to get into the market, these purchasers are game.

Although average price is the barometer for housing values in most major centres, first-time buyers looking to achieve homeownership consider starting prices a more meaningful gauge of affordability. Starting prices can be substantially lower than the market average. For example, average price has surpassed the $600,000 benchmark in Greater Vancouver, while the starting price for a detached home can hover as low as $237,500 in the peripheral areas.

The best value for the dollar continues to be found in the suburbs. For those unwilling to sacrifice on location, small condominium units in new developments and condominium conversions of rental buildings offer up the next best alternative. Condominium conversions in some of the country's major centres can be picked up as low as $150,000 to $175,000.

RE/MAX of Western Canada (1998) Inc. Affordability report, issued April 22, 2008.

Nanaimo real estate

Now that the Easter holiday's and Spring break have come and gone, Spring is officially here! In Nanaimo, the Multiple Listing Service® (MLS®) sales summary data released by the Vancouver Island Real Estate Board (VIREB) for March 2008, shows a drop in unit sales with average sale price increases. The average sale price across the VIREB region for March 2008 was $338,846. This is an 8 per cent increase from the $313,560 posted at the end of March 2007. Unit sales volume increased slightly from the end of February 2008 to the end of March 2008, but dropped approximately 30% from March 2007. It's a balanced market with plenty to choose from and we're seeing more and more interest from elsewhere in Canada. As always, proper pricing continues to be key in this marketplace and our prices continue to be more affordable than Victoria and Vancouver.

JUST LISTED in Cedar Grove Estates! -

This is a gorgeous completely renovated 2 bedroom 2 bath plus den town home in North Nanaimo. This ground floor unit has been finished top to bottom. New paint, counter tops light fixtures, black and stainless steel appliances, flooring, garden shed and much much more. If you are tired of looking at dated worn out listings come and be refreshed; there is no pink in this unit! Fresh modern colours give this home a very warm and contemporary look. This would suit a young couple starting out or retirees that are scaling back. Pets and rentals are allowed but with restrictions (see strata bylaws). Don't miss this one...over $20,000 spent in renovations, there is nothing to do but move in and make you self at home.

This is a must see and will not last long. Pets allowed (subject to strata approval, see bylaws).

Call Doug Belcher for private viewing 250-619-6012.

Nanaimo real estate, MLS listings

JUST LISTED in Eaglepoint Villas! - A quiet & well maintained 2 bedroom, 1 bathroom town home.

The complex was developed by Windley Construction. This very main level entry home is close to shopping, parks and all amenities. It has lots of storage in its heated four foot crawl space.

This unit has a 4pc cheater en-suite and walk-in closet. The living room has a gas fireplace, and a view of the garden area.

No yard work to do here, just relax and enjoy your home. What a great place to retire or start out. No stairs & no one on top of you.

A great neighbourhood to raise children or just take a long walk.

This is a must see and will not last long. Pets are allowed (subject to strata approval, see bylaws).

Call Douglas Belcher for private viewing 250-619-6012.

See my all my Nanaimo real estate listings

View more photos of the North Nanaimo town home

Real Estate Market Residential real estate markets across Canada post solid gains over past decade, says RE/MAX Pent-up demand, population growth, tight inventory levels, and the longest economic expansion since World War II collectively fueled one of the best decades on record for residential real estate in Canada, according to a report released by RE/MAX.
RE/MAX Decade in Review 1997 - 2007 found that major housing centres across the country experienced strong consecutive growth between 1997 and 2007. Average price spiraled upward while unit sales climbed in tandem as more and more Canadians bought into home ownership. Nationally, average price almost doubled in the 10-year period, rising from $154,606 in 1997 to $307,265 in 2007, for a 7.1 per cent annually compounded rate of return. Home sales across the country increased just over 57 per cent from 331,092 units in 1997 to more than half a million sales last year. Edmonton led the country in terms of percentage increase in average price. The city saw a 203 per cent upswing in housing values - or an 11.7 per cent increase annually - with average price rising from $111,587 a decade ago to $338,636 in 2007. Prince Edward Island experienced the highest percentage increase in unit sales, with the number of homes sold up 119 per cent in the 10-year period.
Immigration and in-migration have played a serious role in jump starting residential housing markets, particularly in British Columbia, Alberta, and to some extent, Saskatchewan over the past decade. At first, there was an influx of American buyers, especially in Canada's coastal regions and recreational hot spots, as our southern neighbours took advantage of the almighty US greenback. Then the European and Middle Eastern purchasers flooded the market, buying up real estate considered ‘cheap' by international standards. In recent years, there have been a growing number of purchasers from Mainland China. From a global perspective, there's no question that Canadian real estate brings good value to the table. Percentage increases in home sales varied across the country, with Prince Edward Island experiencing the greatest upswing over the past decade, followed by St. John's at 106 per cent, Kelowna at 84 per cent, and Saint John at 77 per cent. Most markets (12 of the 19 surveyed) reported increases between 40 and 60 per cent. Average price has also seen substantial escalation over the 10-year period, with posted gains ranging from a low of 54.4 per cent in London-St.Thomas to a high of 203 per cent in Edmonton.
Appreciation in Western Canadian markets surpassed all others between 1997 and 2007, with Calgary ranking second in terms of price appreciation at 189 per cent, Kelowna at 179 per cent, Saskatoon at 137 per cent, Winnipeg at 118 per cent, Victoria at 114 per cent and Greater Vancouver at 99 per cent. In 2006, home ownership rates in the country were the highest on record at 68.4 per cent. Population growth has contributed to heated market conditions - especially in Calgary (+31.4 per cent), Edmonton (+20 per cent), Toronto (+20 per cent), and Vancouver (+15 per cent) where percentage increases have hovered in the double-digit range. Overall, Canada's population rose to almost 33 million in the 2006 census, up approximately 10 per cent from 1996 figures.
The non-cyclical nature of the decade comes as some surprise. Never before have we seen such a continuous run up in Canadian real estate. Clearly, strength in all markets has been directly linked to solid growth in local, provincial and national economies. Low interest rates, job security, and consumer confidence have all served to further bolster home-buying activity across the nation. Robust economic performance in Western Canada has also drawn job seekers from across the country, looking to capitalize on employment opportunities. As demand for housing increased across the country, the supply of homes listed for sale began to contract. Multiple offers were commonplace in many areas, some with sales-to-listings ratios as tight as 80 to 90 per cent. Nationally, 1997 marked the first year since 1988 that the sales-to-listings ratio hit 50 per cent. The sales-to-listings ratio would remain above 60 per cent from 2001 onward - rising to as high as 68 per cent in 2002.
The decade was not without its obstacles - the high-tech meltdown, a US recession, 9/11, SARS, Mad Cow, a blackout that affected the entire Northeastern seaboard, natural disasters such as ice storms, hurricanes, and forest fires and more recently, the credit crunch south of the border.
Given the continuation of sound economic fundamentals, it's expected that residential real estate markets across the country will continue to experience healthy activity, albeit at a more moderate pace. RE/MAX of Western Canada (1998) Inc.
Decade in Review issued February 21, 2008.

Nanaimo real estate blog