Lowest Inventory on Record Closes Out the Year

The Vancouver Island Real Estate Board (VIREB) reports that sales of single-family homes in December increased by 34 per cent from one year ago and were 28 per cent lower than in November.

Last month, 302 single-family detached properties (excluding acreage and waterfront) sold on the MLS® System compared to 226 in December 2019 and 421 in November 2020.

• In the condo apartment category, sales rose by 94 per cent year over year and 16 per cent from November.
• Row/townhouse sales increased by 61 per cent from the previous year but dropped by 41 per cent from November.
• Active listings of single-family detached properties were 421 in December compared to 541 in November, a 22 per cent decrease and the lowest number on record.

There were 232 condo apartments and 119 row/townhouses for sale last month, down 24 per cent and 17 per cent, respectively, from November.

As reported in previous media releases, low inventory continues to be the primary reason behind the weaker sales posted in November and December. The buyers are there, but the listings are not.

“Consumer demand is high, and buyers are snapping up well-priced properties quickly once they hit the market,” says VIREB president Kevin Reid. “Multiple offers are commonplace.”

Notwithstanding high demand, correctly pricing your home remains the key to a quick sale. Overpriced homes tend to linger in our area despite prevailing market conditions. Connecting with a local REALTOR® is especially crucial in a competitive housing market, adds Reid.

“Our current market conditions can be confusing and chaotic for buyers and sellers, but REALTORS® have specialized knowledge of their communities that can help streamline the process to ensure the best possible outcome while mitigating associated risks,” says Reid.

Moving on to pricing, the benchmark price of a single-family home hit $546,900 in December, a five per cent increase from the previous year. The benchmark price of an apartment reached $312,000, an increase of four per cent, while the benchmark price of a townhouse rose by 10 per cent year over year, climbing to $450,100.

Benchmark Price by Area

• Nanaimo’s benchmark price rose by one per cent, hitting $569,400.
• Campbell River, the benchmark price of a single-family home hit $473,000 in December, an increase of 12 per cent over last year.
• Comox Valley, the benchmark price was $550,800, up by four per cent from one year ago.
• Duncan reported a benchmark price of $509,600, an increase of five per cent from December 2019.
• Parksville- Qualicum area saw its benchmark price increase by nine per cent to $639,100.
• Port Alberni reached $328,000, a two per cent year-over-year increase.
• North Island, the benchmark price rose to $236,000, a 17 per cent increase over last year.

Please note: The Vancouver Island Real Estate Board (VIREB) transitioned to a new MLS® System on July 28 and now uses a significantly different data model, which has affected our categories and terminology. For the board- supplied graphs, single-family is now referred to as single-family detached, apartment as condo apartment, and townhouse as row/townhouse, which now includes patio homes. However, when reporting HPI numbers, VIREB still refers to single-family, apartment, and townhouse in the media release.