Buyer Demand Continues to Outpace Supply in the VIREB Area

May 2, 2016 Buyer Demand Continues to Outpace Supply in the VIREB Area

NANAIMO, BC – The VIREB housing market is firmly in seller’s territory, with buyer demand continuing to outpace supply in most areas.

 

In April 2016, 662 single-family homes sold on the MLS® System compared to 449 last April, an increase of 47 per cent. Month over month, sales were up by 27 per cent from the 520 sales processed in March 2016. Last month’s active listings totalled 1,697, down 26 per cent from the 2,305 reported in April 2015.

Cameron Muir, BCREA Chief Economist, states that the hot housing market continues to be fuelled by strong consumer demand. Buyers are aggressively pursuing home purchases, with multiple offers the norm rather than the exception throughout British Columbia.

Real estate boards in the Lower Mainland, Chilliwack, Kamloops, the Okanagan, Victoria, and Vancouver Island are all reporting robust market conditions, with some areas posting record-breaking sales. Underpinning B.C.’s vibrant economy and strong demand for housing is employment growth of three per cent, the highest in Canada.

“Although these market conditions cannot continue indefinitely, there is just no sign of any slowdown,” says Muir. “Whether we’ll be reporting the same level of housing activity come September remains to be seen.”

VIREB President Margo Hoffman says that REALTORS® are busier than they have been in years, and multiple offers – particularly on single-family homes – are everyday occurrences. As stated in previous media releases, lack of inventory continues to be the major challenge for REALTORS® and buyers.

“The thing to remember about busy markets like we’re seeing is that they never last forever,” says Hoffman. “If homeowners are thinking of selling, this is an ideal time to do so.

” Although the benchmark and average prices have risen over the past year, Hoffman notes that the VIREB market is still very affordable compared to Victoria and Lower Mainland communities. Whether you are a buyer or seller, Hoffman also adds that a REALTOR® is a vital partner in the sales process to ensure you price your home appropriately for selling and pay the right price when buying.

In April 2016, the benchmark price of a single-family home in the VIREB area was $356,700, up 8.36 per cent from one year ago. Benchmark pricing tracks the value of a typical home in the reported area. The benchmark price of townhouses and apartments also increased in nearly every market. The average MLS® price of a single-family home in April was $396,165, a nine per cent increase from April 2015.

The April 2016 benchmark price of a single-family home in the Campbell River area was $284,600, a 4.09 per cent increase over 2015. In the Comox Valley, the benchmark price was $357,700, up 10.34 per cent from 2015. Duncan reported a benchmark price of $313,400, an increase of 6.65 per cent over the same month in 2015. Nanaimo’s benchmark price rose 9.08 per cent to $379,300 while the Parksville-Qualicum area saw its benchmark price rise by 10.69 per cent to $399,500. The price for a benchmark home in Port Alberni was $191,600, an increase of 1.42 per cent over April 2015

Housing Market Kicks Off 2016 With Strong Sales

NANAIMO, BC – The Vancouver Island housing market kicked off 2016 with strong sales, continuing the momentum created in the last quarter of 2015.

Last month, 258 single-family homes sold on the Multiple Listing Service® (MLS®) compared to 196 in January 2015, an increase of 32 per cent. Sales activity was down slightly from December 2015’s tally of 276 single-family homes sold. Inventory levels are continuing their downward trend, with active listings down 21 per cent compared to one year ago.

BCREA Chief Economist Cameron Muir notes that 2016’s strong start is being bolstered by a robust fourth quarter in 2015. That year-end momentum – combined with limited inventory, a strong provincial GDP, improved job growth, and higher wages – will continue to fuel our local housing market.

Muir does expect sales activity in the VIREB area to edge back about three per cent in 2016, with softer demand coming in the latter half of the year. However, that decrease is normal in light of 2015’s robust sales.

Other factors likely to have a positive impact on VIREB’s housing market are low oil prices and a weak Canadian dollar, notes Muir.

“It’s going to take some time for the oil patch to recover, which could result in some interprovincial migration from the provinces most affected by the drop in oil prices,” says Muir. “Some Albertans close to retirement will likely decide to cash in, and B.C. is a popular retirement locale for our Prairie neighbours. Moreover, a weaker Canadian dollar has a net positive impact on our economy because it makes Vancouver Island a more attractive tourist destination.”

VIREB President Margo Hoffman notes that limited inventory is the biggest challenge for REALTORS® and home buyers in the VIREB area. Our housing market is now in seller’s territory, primarily caused by inventory levels that steadily declined month over month in 2015.

“Inventory has been decreasing for over a year now, and in most markets, there are more buyers than sellers,” says Hoffman. “If you’ve been waiting for an opportune time to put your home on the market, now would be an excellent time to sell.”

Despite current market conditions, however, pricing your home appropriately for your neighbourhood is still a vital aspect of the sales process.

“The fact is that overpriced homes take longer to sell no matter how busy the market is,” says Hoffman. “A REALTOR® can help you set a fair price to ensure the best chance of a sale.”

In January 2016, the benchmark price of a single-family home in the VIREB area was $340,200, up 5.94 per cent from one year ago. Benchmark pricing tracks the value of a typical home in the reported area. The average MLS® price of a singlefamily home in January was $365,850, a seven per cent increase from January 2015 and up slightly over last month.

The January 2016 benchmark price of a single-family home in the Campbell River area was $268,300, down 1.22 per cent from last year. In the Comox Valley, the benchmark price was $332,100, up 3.77 per cent from 2015. Duncan reported a benchmark price of $304,700, an increase of 7.22 per cent over the same month in 2015. Nanaimo’s benchmark price rose 6.17 per cent to $358,200 while the Parksville-Qualicum area saw its benchmark price rise by 10.03 per cent to $388,000. The price for a benchmark home in Port Alberni was $186,800, an increase of 10.64 per cent since January 2015.

Thank You From the Children’s Miracle Network

Received October 28, 2015

 

 

Good morning,

I want to personally thank you for not only attending the RE/MAX of Western Canada 32nd Annual Conference, but for being such an important of the Children’s Miracle Network component of that great event.

We are proud beyond words of our partnership with Children’s Miracle Network hospitals and are thrilled to be celebrating our 23 year partnership together. Since 1992, YOU have made giving back and supporting the kids in your communities a priority through our Miracle Home Program and various fundraising initiatives. RE/MAX affiliates have donated over 56 million dollars nationally to Children’s Miracle Network, providing vital funding for equipment, programs, and support services in 14 Children’s Hospitals and Foundations across the country. Last year, RE/MAX affiliates in Canada donated over $4 million.

Whether you realize it or not, you and your colleagues are making miracles happen each and every day; through your support, through your dedication to giving and through your passion of the cause.

The fundraising events through the conference raised over $45,000 for Children’s Miracle Network and its member hospitals…..

Thank you for helping put smiles back where they belong.

Warm regards,

RE/MAX of Western Canada (1998), LLC

Marie Sheppy, Manager, Corporate Affairs, RE/MAX of Western Canada