HOUSING MARKET QUIETS AS YEAR-END APPROACHES

Last month, 249 single-family homes sold in the Vancouver Island Real Estate Board (VIREB) area, a 37 percent decrease from one year ago and up by three percent from September. There were 42 condo apartment sales in October 2022, a decline of 65 percent year over year and down by 19 percent from September. In the row/townhouse category, 51 units changed hands in October, down 41 percent from one year ago and up four percent from September.

Active listings of single-family detached properties last month more than tripled from October 2021 but dipped by four percent from September, hitting 1,360. VIREB’s inventory of condo apartments was 314 in October 2022, up from 124 listings one year ago and down by five percent from September. There were 296 row/townhouses for sale last month, up by 147 percent from the previous October and virtually the same number as in September (295).

“More inventory and weaker demand mean it’s a perfect time to buy. Well-priced and well-maintained properties are still generating multiple offers and selling briskly, but the market has shifted from the heated conditions REALTORS® saw for much of the year,” says Erica Kavanaugh, 2022 VIREB Chair. “Buyers and sellers need to be realistic and flexible about prices, and a local REALTOR® can help develop
a winning strategy no matter which side of the real estate transaction you occupy.”

Kavanaugh adds that the underlying supply issues contributing to low inventory and high prices are still factors working behind the scenes; they’ve just taken a back seat for now.

“On the surface, it looks like the market is leveling out, and additional inventory is certainly good news for buyers. But active listings are still not where they need to be,” notes Kavanaugh.

In October 2013, there were 2,362 single-family homes for sale. Every year since then, except for 2018 and 2019, active listings dropped from the previous year, reaching a historic low of 394 in 2021. So, it will take a substantial decrease in demand or a significant increase in supply to achieve healthy inventory levels that can accommodate Vancouver Island’s expected population growth in the coming years.

The board-wide benchmark price of a single-family home reached $787,500 in October, up eight percent from one year ago but down by four percent from September. In the apartment category, the benchmark price was $414,200 last month, an 11 percent increase from October 2021 and down three percent from September. The year-over-year benchmark price of a townhouse increased by 11 percent to $583,900, but it dropped by two percent from September.

Benchmark prices for single-family homes decreased from August to September in every zone except the North Island. However, prices are still higher than in 2021. In Campbell River, the benchmark price of a single-family home hit $679,300 in October, up by four percent from the previous year. In the Comox Valley, the year-over-year benchmark price rose by seven percent to $829,800. The Cowichan Valley reported a benchmark price of $804,500, an increase of nine percent from October 2021. Nanaimo’s benchmark price rose by nine percent, reaching $811,200, while the Parksville-Qualicum area saw its benchmark price increase by seven percent to $913,000. The cost of a benchmark single-family home in Port Alberni reached $566,300, up 13 percent from the previous year. For the North Island, the benchmark price of a single-family home rose by 20 percent to $488,000.

(Article re-posted courtesy of the Vancouver Island Real Estate Board)