Home Sales Cool in October & Inventor Dips Again

FOR IMMEDIATE RELEASE November 1, 2016 Home Sales Cool in October and Inventory Dips Again

NANAIMO, BC – In October 2016, 399 single-family homes sold on the MLS® System compared to 368 last October, an increase of eight per cent.Month over month, sales decreased by 24 per cent from September, which saw 528 unit sales. Reduced sales activity in October is likely caused by typical late-summer cooling and continuing inventory challenges.Active listings of single family homes dropped once again in October, dipping to 1,158, the lowest VIREB has seen since the board began tracking inventory levels in 1999.

Robust sales in the VIREB area and throughout much of B.C. continue to be driven by a combination of economic factors that are creating a sound foundation for housing sales.

“British Columbia’s GDP and employment growth have been above three per cent for three years now, and GDP is currently tracking at 3.5 per cent,” says Cameron Muir, BCREA Chief Economist. “Population growth is also a significant factor, with over 8,000 people migrating to B.C. from other parts of Canada in the second quarter of 2016.”

There has been a moderating trend in activity and prices occurring in Vancouver and on the Lower Mainland, with Vancouver experiencing three consecutive months of flat sales in August, September, and October. Yet Vancouver’s housing prices are still high, so many of B.C.’s new residents are settling down in the Fraser Valley or on Vancouver Island.

BCREA cannot yet determine whether the Foreign Buyer Tax imposed at the beginning of August has adversely affected the Vancouver market, nor whether the new housing rules introduced by the Government of Canada in October will have an impact. Thus far, however, there appears to be no negative fallout from any of these factors in the VIREB market. Foreign buyers are not turning to Vancouver Island instead of the Lower Mainland and are not the impetus behind VIREB’s robust housing market. As well, the federal government’s new rules that standardize eligibility criteria for high-ratio and low-ratio insured mortgages will have a greater impact on buyers purchasing homes in the $500,000-plus range. VIREB’s benchmark prices on all property types are below that mark.

Rather, the biggest challenge for the VIREB area continues to be a lack of inventory. Sales would be higher if there were were homes available, and buyer frustration is growing. Jason Finlayson, 2016 VIREB Past President, is encouraging potential home sellers to take advantage of these market conditions.

“Sellers are in the driver’s seat right now, but consumers need to realize that sellers’ markets don’t last forever,” says Finlayson. “If you’re thinking of putting your home on the market, now is the time.”

Finlayson adds that in a competitive housing market, connecting with a local REALTOR® is crucial. They have specialized knowledge of their communities and are equipped with sales tools, such as custom analytics, to help you develop a winning strategy for buying or selling a home.

In October 2016, the benchmark price of a single-family home in the VIREB area was $393,700, up 16 per cent from one year ago. Prices increased in every zone, ranging from around 13 per cent in Campbell River and Port Alberni to 19 per cent in Nanaimo and the Parksville-Qualicum area. The benchmark price of an apartment rose approximately 18 per cent board-wide, with ParksvilleQualicum reporting an increase of 33 per cent. The townhouse market also strengthened, posting a 12 per cent increase boardwide.

The October 2016 benchmark price of a single-family home in the Campbell River area was $308,900, an increase of 13 per cent over October 2015. In the Comox Valley, the benchmark price was $398,500, up 17 per cent from 2015. Duncan reported a benchmark price of $342,100, an increase of 13 per cent compared to October 2015. Nanaimo’s benchmark price rose 19 per cent to $428,500 while the Parksville-Qualicum area saw its benchmark price rise by 19 per cent as well to $449,400. The price of a benchmark home in Port Alberni hit $215,700, up 13 per cent from one year ago. 

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VIREB – Inventory Levels Drop to Historic Low

FOR IMMEDIATE RELEASE September 1, 2016 Inventory Levels Drop to Historic Low in August

NANAIMO, BC – Inventory levels of single-family homes in the VIREB area dropped to a historic low in August, dipping to 1,394, a 38 per cent decrease from one year ago and down from July’s 1,577 available listings. The last time inventory was this low occurred in 2005 when the supply of single-family homes for sale dropped to 1,629 units. VIREB began tracking inventory levels in 1999.

Other market segments are also seeing reduced inventory. Active listings of apartments dropped to 391 last month from 641 in August 2015, a decrease of 39 per cent. Townhouse inventory declined by 32 per cent from one year ago.

In August 2016, 624 single-family homes sold on the MLS® System compared to 439 last August, an increase of 42 per cent. Month over month, sales of single-family homes rose slightly from July, which saw 605 unit sales. Apartment sales also increased significantly from one year ago, with 118 units selling last month, an 87 per cent increase from the 63 units sold in August 2015. More townhouses sold last month as well: 63 compared to 54 in August 2015, an increase of 17 per cent.

Robust housing sales throughout the province, particularly in the southern half, continue to be driven by a solid economic foundation consisting of consumer confidence, strong retail sales, and employment growth of three per cent. With GDP sitting at 3.5 per cent, British Columbia’s economy is leading the country.

Although a moderating trend in activity and prices is occurring in the Vancouver market, that slowdown is not affecting the VIREB area thus far. Market conditions in Vancouver and throughout the Lower Mainland appear to be experiencing some backlash from the Foreign Buyer Tax introduced at the beginning of August, although prices have not dropped significantly. Sales have taken a hit, yet it is too early to determine whether this is a temporary cooling in sales activity or indicative of a larger trend.

“Sales are beginning to normalize in the Vancouver marketplace, but we don’t anticipate a significant correction any time soon,” says Cameron Muir, BCREA Chief Economist. “The typical moderating trend seen after months of hectic activity might have been accelerated slightly by the Foreign Buyer Tax, but we just don’t know yet. We can predict many things, but not the psychology of consumers.”

Limited inventory continues to be a challenge for buyers and REALTORS® in the VIREB area, with multiple offers on accurately priced homes continuing to be the norm rather than the exception. Margo Hoffman, 2016 VIREB President, is encouraging potential home sellers to take advantage of these market conditions.

“With the number of single-family homes for sale dropping to 1,394 last month, a historic low, it’s clear that home sellers are in the driver’s seat,” says Hoffman. “But sellers’ markets don’t last forever, so if you’re thinking of selling your home, now is the time.”

Hoffman adds that in a competitive housing market, connecting with a local REALTOR® is crucial to ensure you develop a winning strategy for buying or selling your home.

In August 2016, the benchmark price of a single-family home in the VIREB area was $384,000, up 13.23 per cent from one year ago. Prices increased in every zone, ranging from nine per cent in Port Alberni to 16 per cent in Nanaimo and 17 per cent in the Parksville-Qualicum area. The benchmark price of an apartment rose approximately 15 per cent board-wide, with Duncan and Parksville-Qualicum reporting 25 and 23 per cent increases, respectively. The townhouse market also strengthened, as seen in the benchmark price increasing by 10.63 per cent.

The August 2016 benchmark price of a single-family home in the Campbell River area was $304,200, an increase of 10.41 per cent over August 2015. In the Comox Valley, the benchmark price was $380,200, up 12 per cent from 2015. Duncan reported a benchmark price of $333,800, an increase of 11.30 per cent compared to August 2015. Nanaimo’s benchmark price rose 15.80 per cent to $413,500 while the Parksville-Qualicum area saw its benchmark price rise by 17 per cent to $443,500. The price of a benchmark home in Port Alberni was $209,500, up nine per cent from one year ag

VIREB Market Update August 2016

August 2, 2016 Home Sales a Bit Cooler in July But Significantly Higher Than Last Year

NANAIMO, BC – Home sales in the VIREB area cooled somewhat last month but posted a 19 per cent increase over July 2015.

In July 2016, 608 single-family homes sold on the MLS® System compared to 512 last July. Month over month, sales decreased by 15 per cent from the 712 sales processed in June 2016. Last month’s active listings for single-family homes totalled 1,577, down 34 per cent from the 2,391 reported in July 2015 and beating June’s figure of 1,621.

This is a historic low for VIREB, which began tracking inventory levels in 1999. The last time inventory was this low occurred in 2005 when the number of single-family homes for sale dropped to 1,629.

Economic factors fueling the provincial housing market are strong consumer confidence, robust retail sales, and high employment growth. With GDP sitting at 3.5 per cent, British Columbia’s economy continues to lead the country. Concerning the new Foreign Buyer Tax that takes effect today, Muir says it is too early to know whether it will affect home prices on the Lower Mainland or spill over into other parts of the province.

“The housing market is usually slower in the summer months, but we believe that sales might be beginning to normalize,” says Cameron Muir, BCREA Chief Economist. “If so, that would allow inventory to build up and ease pricing pressure a bit.”

Margo Hoffman, 2016 VIREB President, agrees that the housing market typically cools during the summer, and this trend likely accounts for July’s lower sales figures. However, limited inventory continues to be a challenge for buyers and REALTORS®.

“Although we’re in a seller’s market, homeowners are holding back because they’re worried they won’t find another home to purchase,” says Hoffman. “We’re beginning to see more inventory, but buyers snap up available properties quickly.”

Low inventory is also contributing to rising benchmark prices for single-family homes, townhouses, and apartments. Despite those increases, however, the Vancouver Island housing market continues to be affordable compared to the Lower Mainland and Victoria.

“Home buyers in the VIREB area have a variety of price points as options,” adds Hoffman. “The benchmark price of a singlefamily home ranges from a low of $209,600 in Port Alberni to a high of $443,800 in the Parksville-Qualicum area, so there is a price to suit almost everyone.”

Hoffman agrees that at the moment, there is no way to say whether the Foreign Buyer Tax will affect home prices in the VIREB area. For now, the housing market remains competitive, so connecting with a local REALTOR® is crucial to ensure you develop a winning strategy for buying or selling your home.

In July 2016, the benchmark price of a single-family home in the VIREB area was $379,900, up just under 12 per cent from one year ago. The benchmark price of an apartment rose by 9.77 per cent to hit $207,900 while the benchmark price of a townhouse increased to $277,900, up just over 10 per cent from one year ago. Benchmark pricing tracks the value of a typical home in the reported area. The average price of a single-family home last month was $409,816, an increase of 12 per cent over July 2015.

The July 2016 benchmark price of a single-family home in the Campbell River area was $301,400, an increase of 5.57 per cent over July 2015. In the Comox Valley, the benchmark price was $371,000, up 10.68 per cent from 2015. Duncan reported a benchmark price of $326,700, an increase of just over nine per cent compared to July 2015. Nanaimo’s benchmark price rose 15.46 per cent to $409,700 while the Parksville-Qualicum area saw its benchmark price rise by 17 per cent to $443,800. The price of a benchmark home in Port Alberni was $209,600, up 7.86 per cent from one year ago.

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