BUYERS TAKING A MEASURED APPROACH IN THE SPRING MARKET

Last month, there were 391 sales of single-family homes in the Vancouver Island Real Estate Board (VIREB) area, a 22 percent decrease from one year ago (500) and a three percent increase from March 2023 (381). Sales of condo apartments in April came in at 77, declining by 31 percent year over year and increasing by 17 percent from the previous month. In the row/townhouse category, 88 units changed hands in April, down six percent from one year ago and up by 14 percent from March.

Active listings of single-family homes were 956 in April, up from 731 one year ago. VIREB’s inventory of condo apartments hit 304 last month, up from 174 listings in April 2022. There were 246 row/townhouses for sale last month compared to 150 one year ago.

“We’re seeing a lot of positivity among buyers, but they’re taking a more thoughtful approach this spring compared to last year when the fear of missing out contributed to a frenetic market,” says Kelly O’Dywer, 2023 Chair.

She notes that a “perfect storm” of factors last year – including record-low supply, historically low mortgage rates, and lifestyle changes resulting from the COVID-19 pandemic – fuelled dramatic price increases and highly competitive real estate transactions.

“It isn’t a balanced market yet, largely because inventory is still lower than what’s needed on Vancouver Island,” says O’Dwyer. “But prices are down board-wide from last year, so homes are definitely more affordable this spring.”

The board-wide benchmark price (MLS® Home Price Index) of a single-family home was $738,600 in April 2023, down 14 percent from one year ago and up by one percent from March. In the apartment category, the benchmark price was $410,000 last month, a 10 percent decrease from April 2022 and up by one percent from March. The year-over-year benchmark price of a townhouse was $563,600 in April, down seven percent from one year ago and a slight increase from March.

O’Dwyer says that sellers must recognize their home isn’t going to fetch the same amount of money that it would have last year but cautions buyers not to expect large price decreases. If demand continues at the current pace or escalates, there will be upward pressure on home prices. From March to April, single family homes, condo apartments, and row/townhouses posted modest price increases in several zones.

In Campbell River, the benchmark price of a single-family home was $677,800 in April, down 11 percent from the previous year. The Comox Valley’s year-over-year benchmark price dropped by 10 percent to $797,000. In the Cowichan Valley, the benchmark price was $743,300, a 14 percent decrease from April 2022. Nanaimo’s year-over-year benchmark price dropped by 16 percent to $753,000, while the Parksville-Qualicum area saw its benchmark price decrease by 14 percent to $850,500. The cost of a benchmark single-family home in Port Alberni was $515,400, down 16 percent from the previous year. For the North Island, the benchmark price of a single-family home decreased by four percent to $422,300.

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