WAITING IS THE THEME OF VIREB’S SUMMER HOUSING MARKET

The Vancouver Island Real Estate Board (VIREB) recorded 737 unit sales boardwide (all property types) on the MLS® System in June 2024. In the single-family category (excluding acreage and waterfront), 359 homes sold in June, down 15 percent from one year ago and 12 percent from May. Sales of condo apartments last month came in at 82, decreasing by 24 percent year over year and by 11 percent from May. In the row/townhouse category, 91 units changed hands in June, down eight percent from one year ago and 16 percent from May.

Active listings of single-family homes were 1,566 in June, an increase from the 1,105 posted one year ago. VIREB’s inventory of condo apartments was 440 last month, up from 319 in June 2023. There were 364 row/townhouses for sale last month compared to 274 the previous year.

Jason Yochim, VIREB Chief Executive Officer, says the market is behaving differently than during a typical summer, and the expected boost from the recent interest rate cut hasn’t materialized. “Buyers and sellers seem to be holding back and waiting for some sort of indication that it’s a good time to make a move,” says Yochim. “REALTORS® are conducting open houses and showings, but it’s decidedly more sluggish than we usually see at this time of year.”

Yochim notes that well-priced, high-quality properties continue to garner multiple offers, but REALTORS® are seeing more offers significantly below the asking price.

“Inventory has risen considerably, and it’s been five years since active listings in the VIREB area were at this level, so buyers have more choice and more time to wait,” adds Yochim. “The same holds true for sellers, so there seems to be a waiting game going on.”

The board-wide benchmark price (MLS® Home Price Index) of a single-family home was $787,300 in June 2024, up three percent from one year ago and one percent from May. In the apartment category, the benchmark price was $411,200 last month, up one percent from the previous June and down slightly from May. The benchmark price of a townhouse in June was $542,400, down two percent from one year ago and a slight decrease from May.

In Campbell River, the benchmark price of a single-family home was $704,600 last month, up six percent from the previous year. The Comox Valley’s year-over-year benchmark price rose by six percent to $842,800. In the Cowichan Valley, the benchmark price was $791,100, a two percent increase from June 2023. Nanaimo’s year-over-year benchmark price rose by three percent to reach $823,000, while the Parksville-Qualicum area saw its benchmark price increase by one percent to $896,800. The cost of a benchmark single-family home in Port Alberni was $514,300, a small uptick from the previous year. For the North Island, the benchmark price of a single-family home rose by three percent to $437,800.

(Article reposted courtesy of the Vancouver Island Real Estate Board)