RETURN TO A MORE TRADITIONAL SPRING MARKET IS WELCOME

Last month, there were 488 sales of single-family homes in the Vancouver Island Real Estate Board (VIREB) area, an eight percent increase from one year ago (450) and a 25 percent increase from April 2023 (391). Sales of condo apartments in May came in at 86, declining by seven percent year over year and increasing by 12 percent from the previous month. In the row/townhouse category, 94 units changed hands in May, down nine percent from one year ago and up by seven percent from April.

Active listings of single-family homes were 979 in May, up from 976 one year ago. VIREB’s inventory of condo apartments hit 318 last month, up from 230 listings in May 2022. There were 252 row/townhouses for sale last month compared to 168 one year ago.

“We’re seeing smartly priced homes and measured offers compared to last year, when the fear of missing out created a frenetic market,” says Kelly O’Dwyer, 2023 Chair. “It feels more reminiscent of a traditional pre-COVID spring.”

O’Dwyer adds that inventory is still a hurdle, and sales would be higher if more homes were available. Vancouver Island has been chronically undersupplied for a long time, and that dearth of inventory continues to be a roadblock for potential buyers.

“We’re encouraged by the provincial government’s Homes for People action plan and its commitment to reduce the red tape that sometimes hinders the construction of new homes,” says O’Dwyer. “However, the supply issue won’t be resolved overnight, as it can take 18 months or more to bring new inventory to the market.”

The board-wide benchmark price (MLS® Home Price Index) of a single-family home was $751,200 in May 2023, down 11 percent from one year ago and up by two percent from April. In the apartment category, the benchmark price was $392,800 last month, an eight percent decrease from May 2022 and up by one percent from April. The year-over-year benchmark price of a townhouse was $547,800 in May, down nine percent from one year ago and a two percent increase from April.

In Campbell River, the benchmark price of a single-family home was $646,500 in May, down 12 percent from the previous year. The Comox Valley’s year-over-year benchmark price dropped by 10 percent to $802,000. In the Cowichan Valley, the benchmark price was $758,900, a 13 percent decrease from May 2022. Nanaimo’s year-over-year benchmark price dropped by 12 percent to $777,200, while the Parksville-Qualicum area saw its benchmark price decreased by nine percent to $880,700. The cost of a benchmark single-family home in Port Alberni was $520,700, down 13 percent from the previous year. For the North Island, the benchmark price of a single-family home decreased by five percent to $435,100. From April to May, single-family homes, condo apartments, and row/townhouses posted price increases in nearly all zones, ranging from one to five percent.

Article Information & Stats courtesy of the Vancouver Island Real Estate Board (VIREB).