Home Sales Are Down, But Prices Are Up on Vancouver Island

Posted on Jul 13, 2018

Housing demand has decreased in the Vancouver Island Real Estate Board (VIREB) area, which ranges from Duncan to Port Hardy, in the first half of 2018. Despite lower sales to date, lack of inventory continues to tilt the market in favour of sellers and move prices up.

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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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Economic Growth Driving Vancouver Island Housing Prices: VIREB

Posted on Oct 6, 2017

Strong economic fundamentals are underpinning housing activity in British Columbia, particularly in the southern half of the province. The B.C. economy has expanded at above-trend growth for over three years, with 2017 expected to be the fourth consecutive year of economic growth hitting three per cent or higher.

The Vancouver Island Real Estate Board has released its September 2017 housing report. Employment growth is around seven per cent, and consumer confidence is high, with retail sales in the province expected to climb close to eight per cent this year.

The September 2017 benchmark price of a single-family home in the Campbell River area was $370,700, an increase of 22 per cent over September 2016. In the Comox Valley, the benchmark price hit $461,700, up 22 per cent from last year. Duncan reported a benchmark price of $410,500, an increase of 16 per cent compared to September 2016. Nanaimo’s benchmark price rose 18 per cent to $498,300 while the Parksville-Qualicum area saw its benchmark price increase by 16 per cent to $518,000. The price of a benchmark home in Port Alberni was $254,700, up 18 per cent from one year ago.

Excerpt from VIREB October 2 press release.

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