Housing Market Winding Down the Year End on a Slow Note

Last month, there were 236 sales of single-family homes in the Vancouver Island Real Estate Board (VIREB) area, down two percent from last November and three percent from October. Sales of condo apartments in November came in at 56, increasing by four percent year over year and down seven percent from October. In the row/townhouse category, 50 units changed hands last month, an increase of nine percent from one year ago and down 14 percent
from October 2023.

Active listings of single-family homes were 1,040 in November, down from 1,195 one year ago. VIREB’s inventory of condo apartments was 285 last month, one more than in November 2022. There were 282 row/townhouses for sale last month compared to 266 one year ago.

“November didn’t hold any surprises,” says Kelly O’Dwyer, 2023 Chair. “As we get closer to Christmas, the market usually slows down considerably.”

O’Dwyer adds that there is undoubtedly demand out there, but high interest rates are deterring many buyers from moving forward. “Many potential buyers are opting to wait until spring, with the hope that rates will come down, so we’re expecting a decent spring market,” says O’Dwyer.

The British Columbia Real Estate Association anticipates that VIREB will close the year with around 7,100 sales, the lowest number posted since 2013.

The board-wide benchmark price (MLS® Home Price Index) of a single-family home was $760,100 in November 2023, up four percent from one year ago and down one percent from October. In the apartment category, the benchmark price was $388,300 last month, a year-over-year increase of around one percent and a two percent decrease from October 2023. The benchmark price of a townhouse last month was $555,000, up three percent from November 2022 and down slightly
from October.

In Campbell River, the benchmark price of a single-family home was $656,900 last month, up four percent from the previous year. The Comox Valley’s year-over-year benchmark price rose seven percent to $832,800. In the Cowichan Valley, the benchmark price was $769,800, a five percent increase from November 2022. Nanaimo’s year-over-year benchmark price rose by four percent to reach $793,100, while the Parksville-Qualicum area saw its benchmark price increase by two percent to $861,300. The cost of a benchmark single-family home in Port Alberni was $507,300, down three percent from the previous year. For the North Island, the benchmark price of a single-family home decreased by six percent to $413,400. Regardless of market conditions, connecting with a local REALTOR® can help smooth the way to a successful real estate transaction.

(Information re-posted courtesy of the Vancouver Island Real Estate Board)