How low can housing inventory go?

The November 2021 Nanaimo Real Estate Market Stats show that active listings in the Vancouver Island Real Estate Board (VIREB) area continue to drop,
with demand far outpacing supply. The inventory has hit consecutive historical lows for several months running, leading to a continued strong seller’s market.

The active listings of single-family homes were 44 percent lower last month than in November 2020 and
dropped by 24 percent from the previous month. VIREB’s inventory of condo apartments declined by 69
percent from one year ago and was 23 percent lower than in October. The inventory for Row/townhouse dropped
by 55 percent year over year and was 47 percent lower than the previous month.

By category, 353 single-family homes sold on the MLS® System November, which is a 16 percent decrease from
one year ago. There were 110 condo apartment sales last month compared to 107 one year ago and 122 the
previous month. In the row/townhouse category, 98 units sold compared to 90 the previous November and
88 in October 2021.

According to the British Columbia Real Estate Association (BCREA), the supply situation is especially
critical in markets outside the Lower Mainland. One of the worst inventory situations is on Vancouver
Island, where even if sales were to return to long-run average levels, total listings would need to nearly double to
achieve a balanced market, and the road to doubling those listings lies in building more homes.

VIREB welcomes the news that the Government of British Columbia is giving local governments more tools
and powers to simplify and speed up their development approvals processes. The changes announced
by the government include removing requirements for local governments to hold public hearings for the development proposals that already align with Official Community Plans and equipping municipal staff to make decisions for minor development variance permits.

“Increasing housing supply isn’t a simple solution. It requires a coordinated effort from all levels of
government and adequate incentives for municipalities to take action,’ says Ian Mackay, 2021 VIREB
President.
“Homes need to be built in a reasonable time frame at a reasonable cost, and it cannot continue
to take years to get a development off the ground. The public also has a role to play in being open to
gentle densification in some areas.”

Naturally, the tight housing market is affecting prices in the VIREB area. The board-wide benchmark price
of a single-family home reached $769,700 in November, which is a 33 percent increase year over year. In the apartment
category, the benchmark price hit $401,100 last month, which is a 29 percent increase from November 2020. The
benchmark price of a townhouse increased by 35 percent, reaching $594,400 in November.

November 2021 Benchmark Prices

• Nanaimo’s benchmark price rose by 29 percent and was hitting $768,700

• Campbell River, the benchmark price of a single-family home hit $683,500 in November, which means it increased by 30 percent from the previous year
• Comox Valley, the year-over-year benchmark price rose by 32 percent to $785,300
• Cowichan Valley reported a benchmark price of $770,000, an increase of 33 percent from November 2020
• Parksville-Qualicum area saw its benchmark price increase by 35 percent and hit $903,300
• Port Alberni reached $509,100, which is a 40 percent year-over-year increase
• North Island rose by 51 percent, hitting $417,700 in September

November 2021 Nanaimo Real Estate Market Stats

 

If you require specific information on property values please contact one of our REALTORS® or call (250) 751-1223.

Original Source: VIREB