Northwest Bay sunset
VIREB FOR IMMEDIATE RELEASE
June 2, 2014 Healthy May Market Activity Paves the Way for Strong Summer Sales
NANAIMO, BC – Sales activity across the Vancouver Island housing market area continued its upward swing this May, paving the way for a strong summer market.
A total of 485 single-family homes sold on the MLS® system in the VIREB coverage area in May 2014. This represents a 34.7% increase over the 451 sales recorded last month, and an 8% increase over sales recorded last year at this time. Inventory levels continue to remain slightly lower than last year, with active listings down approximately two per cent.
According to VIREB president, Blair Herbert, the lower inventory has not had much of an impact on pricing trends, as home prices have remained relatively stable. “Typically, when listing inventory is down, the market begins to experience some modest pressure on pricing; however, this has not been the case in the VIREB market area thus far,” he said.
In May 2014, the benchmark price for a single-family home in the VIREB coverage area was $314,700 with an MLS® HPI index value of 147.8. (This represents a 47.8 per cent increase since January 2005, when the index was 100). The benchmark price is down 0.07 per cent from last month and increased 2.07 per cent over last year. The average price of a single-family home in the VIREB area was $345,861, which represents a slight increase of one per cent over this time last year.
“The Vancouver Island market continues to be very affordably priced for buyers in comparison to some of the larger urban markets across the country,” said Herbert. “In terms of overall value for your dollar, our market is very attractive.” According to BCREA chief economist, Cameron Muir, low interest rates continue to be a powerful incentive to get into the marketplace. While market activity has remained robust, he does not anticipate any movement in the housing market until later this year. “We are in a bit of a holding pattern as we wait for the economy to catch up, particularly on the job front,” he noted.
The benchmark price for a single-family home in the Campbell River area was $261,800, down 2.35% over this time last year; in the Comox Valley the benchmark price was $321,500 marking a slight increase of 0.59% over last year; Duncan reports a benchmark price of $282,600 which is a decrease of 0.21% from last year; Nanaimo’s benchmark price was $338,600 rising 0.87% over last year; Parksville/Qualicum has a benchmark price of $349,500, which is virtually unchanged from last year; and the price for a benchmark home in Port Alberni is listed at $193,600 increasing 2.2% from last year.