NANAIMO – November sales activity in the Vancouver Island real Estate Board (VIREB) area dipped slightly from October, but rose significantly from one year ago, with the board on target to reach its forecasted sales for 2015. Last month, 351 single-family homes sold on the Multiple Listing Service® (MLS®) compared to 299 in November 2014, an increase of 17 percent. Inventory levels are continuing their downward trend, with active listings showing a reduction of 17 percent from one year ago.
British Columbia Real Estate Association (BCREA) Chief Economist Cameron Muir states that an improving Canadian economy and rising employment levels in British Columbia are bolstering consumer confidence and spending. “Employment levels increased by 3.1 percent year over year in the province, and retail sales are up 70 percent,” said Muir. “We’re in the midst of a strong bull market, and consumers are spending their money on everything from apparel to housing.”
Muir noted that these dynamic market conditions will carry over into 2016, but he does anticipate some tempering to occur in most areas, with sales in the VIREB area edging back between 3.5 and 4 percent. “The housing market won’t dramatically wane because sales don’t typically hit historically high levels and then flat line, but we do expect to see some reductions,” he said.
VIREB President Jason Finlayson says that it appears as though dropping inventory levels are now causing the benchmark price to rise in the VIREB area. “Our inventory levels have been going down steadily this year, and we’ve been expecting home prices to reflect that reality,” said Finlayson. “Almost all of our markets are now reporting increases in the benchmark price from one year ago. This includes townhouses and apartments in addition to single-family homes.”
With prices firming up in the VIREB area and a smaller pool of potential homes for sale, conditions are suited for selling a home. “If you’ve been thinking of putting your house on the market but have been holding off, it’s an excellent time to move forward,” he said. “But to ensure the best chance of a sale, you should consider using a local REALTOR® to help you price your home appropriately.”
In November 2015, the benchmark price for a single-family home in the VIREB coverage area was $338,500, up 6.77 percent from one year ago. Benchmark pricing tracks the value of a typical home in the reported area. The average MLS® price of a single-family home in November was $360,101, a six percent increase from November 2014 and a slight decrease from last month.
The November 2015 benchmark price of a single-family home in the Campbell River area was $270,500, an increase of 2.79 percent from last year. In the Comox Valley, the benchmark price was $339,200, up just under eight percent from 2014. Duncan reported a benchmark price of $304,100, an increase of 6.29 percent over the same month in 2014. Nanaimo’s benchmark price rose 4.27 percent to $355,600 while the Parksville-Qualicum area saw its benchmark price rise by 5.65 percent to $377,000. The price for a benchmark home in Port Alberni was $189,600, an increase of 6.13 percent since November 2014.