Single Family Homes Sought Out
Kevin Reid
NANAIMO – VIREB’s housing market continues to recover from the COVID-19 downturn seen in April and part of May.
A total of 892 units sold in July 2020, down four per cent from the 931 sales posted in July 2019.
Breaking down those sales by category, 574 single-family detached properties sold on the MLS System last month compared to 573 in June 2020 and 554 in July 2019. Sales of condo apartments dipped by 14 per cent year over year while row/townhouse sales dropped by 16 per cent.
The benchmark price of a single-family home board-wide was $545,700 in July, an increase of six per cent from the previous year and two per cent higher than in June. (Benchmark pricing tracks the value of a typical home in the reported area.)
In the apartment category, the year-over-year benchmark price rose by four per cent, hitting $312,800 and up marginally from June. The benchmark price of a townhouse in July rose by four per cent year over year, climbing to $425,800 but down slightly from June.
In Campbell River, the benchmark price of a single-family home last month was $456,000, an increase of five per cent over last year. In the Comox Valley, the benchmark price reached $557,500, up by eight per cent from one year ago. Duncan reported a benchmark price of $500,200, an increase of six per cent from July 2019.
Nanaimo’s benchmark price rose by seven per cent to $593,600 in July, while the Parksville-Qualicum area saw its benchmark price increase by two per cent to $604,900. The cost of a benchmark single-family home in Port Alberni reached $342,700 in July, a seven per cent increase from one year ago.
“Our housing market has seemingly rebounded from the COVID-19 dip we witnessed in April,” says VIREB president Kevin Reid. “We believe that the recovery is being fueled by low interest rates and supply shortages, and we’re cautiously optimistic that the turnaround will last.”
Reid does wonder what will happen when the Canada Emergency Response Benefit (CERB) ends. However, since most layoffs thus far have affected younger individuals who would not have been entering the housing market, there may be no significant downturn when CERB ceases.
“An interesting development we’re noting is that there seems to be more demand for single-family homes and less interest in condominiums and townhouses at the moment,” adds Reid. “It makes us wonder whether quarantine and lockdown have instilled a desire for more space among buyers.”
On the provincial front, the British Columbia Real Estate Association reports that sales in BC are surging to pre-COVID-19 levels in most markets. Although listings activity has normalized along with sales, active listings are still down close to 20 per cent year over year. As a result, many markets are seeing upward pressure on prices.