1st Quarter Construction Numbers Reported by Building Links

Posted on May 23, 2018

Building Links has compiled the construction statistics for the first quarter of 2018 for the Comox Valley and Campbell River communities. Compared to 2017 we reported an increase of 28 per cent in overall construction values in the areas of Courtenay, Comox, the Comox Valley Regional District, Cumberland and Campbell River. This amount was slightly higher than the 25 per cent increase reported comparing the first quarter of 2016 to 2017.

Total construction values for the first quarter of 2018 total $59.6 million compared to $46.4 million in 2017. There has been a slight decline in the construction of single family dwellings, and an increase in the construction of multi family residential housing including duplexes, triplexes, fourplexes and secondary dwellings.

The Comox Valley Regional District reported the highest increase (41 per cent) increase in single family construction when comparing 2017 to 2018, while the growth in other municipalities was primarily due to an in- crease in the construction of multi-family residential units.

Growth in Cumberland registered a 114 per cent increase during the first quarter of 2018, mostly due to multi-family residential housing construction. It is the same story in Campbell River as their construction statistics showed 41 per cent increase primarily due to an increase in permits for multi-residential housing.

The number of permits for single family homes are down slightly across all areas with the Comox Valley Regional District being the only community show- ing an increase when comparing 2018 to 2017. Moving forward for 2018 we expect to see a continued increase in the construction of secondary suites, carriage homes and secondary dwellings. We also expect to see an increase in the new construction of multi-residential housing for sale and new builds for rental housing and a decrease in the construction of single family homes for 2018.

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Construction Numbers Continue to Climb in 1st Quarter of 2018

Posted on Apr 20, 2018

Building Links has compiled year-to-date building statistics for January 1 – March 31, 2018 and they are reporting an increase of 28% in overall construction values in the areas of the Comox Valley and Campbell River for 2018 compared to 2017.

Construction values in these areas for the first quarter of 2018 total $59,623,110 compared to $46,388,088for the same period in 2017. There has been a slight decline in the construction of single family dwellings, and an increase in the construction of multi-family residential including duplexes, triplexes, four-plexes and secondary dwellings.

The Comox Valley Regional District (CVRD) reported the highest increase (41%) in single family construction when comparing 2017 to 2018. The growth in other municipalities surveyed was primarily due to an increase in the construction of multi-family residential units.

The overall construction value increase of 28% in 2018 was slightly higher than the 25% increase reported when comparing the first quarter of 2016 to 2017.

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Canadian Homes Sales Dropped in January

Posted on Feb 28, 2018

Statistics released February 15 by The Canadian Real Estate Association (CREA) show national home sales fell sharply in January 2018. Home sales via Canadian MLS® Systems dropped sharply in January after having climbed to the highest monthly level on record in December.

The Canadian Real Estate Association (CREA) has released sales statistics showing national home sales fell sharply in January 2018.

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Vancouver Island Housing Prices and Starts Soared in 2017

Posted on Feb 15, 2018

Building Links has recently tabulated the year-to-date construction statistics for the Comox Valley and Campbell River areas for 2017. Construction values in all areas total $217 million, up by $11 million from 2016 to 2017.

Single-family home construction is also up slightly in Comox, Courtenay and Campbell River (6 per cent to 13 per cent) with Cumberland showing the biggest increase of 120 per cent and the CVRD coming in with an increase of 19 per cent.

Secondary suite and carriage home construction has increased significantly by 159 per cent from 2016 to 2017.

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After Busy December, Home Sales on Vancouver Island Return To Normal in January

Posted on Feb 3, 2018

Sales in the Vancouver Island Real Estate Board (VIREB) area returned to seasonally normal levels in January after experiencing the busiest December on record. The Vancouver Island Real Estate Board (VIREB) has released its monthly sales report, showing sales returning seasonally normal levels in January after the busiest December on record. Higher interest rates and the new mortgage stress test are expected to erode purchasing power for some buyers in 2018.

The British Columbia Real Estate Association (BCREA) notes that the housing market in B.C. is still thriving due to the province’s strong economy. However, some economic headwinds in the form of higher interest rates and Guideline B-20 – also known as the mortgage stress test – are forecast for 2018. BCREA expects economic growth in the province to slow this year, expanding at a respectable 2.8 percent, but lower than we have seen in some time. Rising interest rates will erode affordability for some home buyers, and Guideline B-20 could reduce the purchasing power of conventional mortgagors by up to 20 percent.

Last month, the benchmark price of a single-family home in the Campbell River area hit $379,600, an increase of 22 percent from the previous January. In the Comox Valley, the benchmark price was $463,700, up 17 percent from last year. Duncan reported a benchmark price of $418,600, an increase of 15 percent compared to January 2017. Nanaimo’s benchmark price rose 19 percent to $514,400 while the ParksvilleQualicum area saw its benchmark price increase by 14 percent to $519,700 from one year ago and dip slightly from December 2017. The cost of a benchmark home in Port Alberni reached $259,100, up 20 percent from one year ago.

Excerpt from VIREB Press Release on Feb. 1, 2018.

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Secondary Suite and Carriage Home Construction Sees Major Jump

Posted on Oct 25, 2017

Building Links has recently compiled the building permit and construction values for the Comox Valley and Campbell River areas for the third quarter of 2017. Building Links notes a trend in the increase in the construction of secondary suites and carriage homes.

They reported an overall increase of 238 per cent. Building Links tracks this information when a separate building permit has been taken out for a secondary suite or carriage home. In many municipalities including Courtenay, Comox and Cumberland, specific zoning allows for the construction of a secondary suite in a single-family home without applying for a separate permit. Based on this information they estimate that the increase is actually more like 400 per cent in 2017 compared to 2016.

This means, according to the building permits reported, that there have been approximately 100 secondary suites and or carriage homes built in the past year, compared with approximately 25 built in 2016.

Due to the rising cost of individual lots, the cost of construction and the looming shortage of sub trades, more buyers are looking to subsidize the high cost of a new home by building a secondary suite or a carriage home. According to the Vancouver Island Real Estate Board (VIREB) report for September of 2017, the cost of purchasing a home in the Comox Valley and the Campbell River area has increased by 22 per cent over the same time period last year.

There is a shortage of lots in both the Campbell River and the Comox Valley areas, and this is contributing to the extremely high cost of buying a new home. Many new subdivisions are being proposed in both areas, but it is taking, in some cases, years to get the subdivision approved by the various municipalities.

According to the same report by VIREB in September, strong economic fundamentals are underpinning housing activity in British Columbia, particularly in the southern half of the province. The BC economy has expanded at above-trend growth for more than three years, with 2017 expected to be the fourth consecutive year of economic growth hitting three per cent or higher.

The secret is out about Vancouver Island – its beautiful scenery, the welcoming communities and up to now, the reasonable cost of buying a home. The real estate scene is changing dramatically and quickly and more people are choosing Vancouver Island as their destination to retire or relocate. In my view, the price of real estate will continue to go up due to the demand to live in a piece of paradise, known as Vancouver Island.

Clarice Coty is the editor of Building Links.
Contact: clarice@buildinglinks.ca or
find Building Links on Facebook.

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