The Neal Estate Team's Real Estate Market Update for Vancouver Island for October 2021

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Vancouver Island continues to face challenges in regard to inventory and rapidly rising house prices. While inventory did increase in September (compared to August), it did not increase as much as one might have hoped considering traditional seasonal factors. Typically, the last months of the year see a significant decrease in inventory before a busier spring market, but as inventory is already staggeringly low it would have been nice to see a pre-slump bump.

Rural areas specifically have had a tremendous increase in value much to the dismay of buyers who missed out last year. As COVID buyers prioritized square footage over closeness to city centres and many workers found remote employment suddenly possible, the benchmark (average home in the area) price has risen 49% and 34% in the north island and Cowichan Valley area respectively.

Inventory is the burning issue on everyone's minds although it may be more accurate to say inventory is the quickly dwindling fuel that is being burned by the ever-present demand. Year over year numbers has the number of single-family homes for sale 47% less than September 2020 and condos and townhomes 57% and 48% down each. 

On the other side of the ledger, there were 932 total sales in September which was 27% less than September last year although there are so many fewer listings on the market it is hard to blame the decreased sales on lack of effort by potential buyers. Single-family homes sold 3% less than the previous month and 30% less than last year but many of those buyers were simply priced out of that segment. With so few single-family homes available it doesn’t take many motivated buyers to push the market higher. Condo sales rose year over year and month over month, by 1 and 22 listings respectively, accounting for some of the buyers priced out of detached dwellings (122 total condo sales).

Vancouver Island Real Estate Board-wide (the island minus Greater Victoria) hit $747,600 for its Benchmark price according to the Home Price Index. The increase was only slight from the previous month but 32% up from September the previous year. Condo’s island-wide hit $395,100 (30% up y/y) and townhomes hit $578,500 (34% up y/y).

Regionally, prices increased year over year as follows:

Campbell River $653,700 +29%
Comox Valley $771,300 +31%
Cowichan Valley $755,000 +34% 
Nanaimo $745,400 +28% 
Parksville-Qualicum $869,000 +33%
Port Alberni $494,500 +40% 
North Island $404,100 +49%
Victoria $1,100,200 +25.1%

If you would like to know how we are beating the market, helping our clients win, and keeping people moving safely, please call or test 250-386-8181 or simply click Here for a FREE consultation. Find new listings before they get to MLS and ask us about featuring your home on VancouverIslandComingSoon.com, where we generate interest while you're getting ready to come to market. Ask us also about our FREE Staging Consultation for advice on preparing your home in its best light for the market, ensuring you the best results.  

Stay safe,

The Neal Estate TeamYour Victoria & Vancouver Island Real Estate Experts“Let our experience be your guidewww.RonNeal.comwww.HomesOnVancouverIsland.ca