Fall 2018 Vancouver Island Real Estate Report

The ever-changing landscape of the real estate industry makes it difficult to predict the future trend of the market. With fall 2018 coming in fast, we at Oceanvale would like to give you a brief idea on how the real estate market in Nanaimo looks like. Here’s what the market looks like so far:

  •       Sales of single-family homes went up by 7% as compared to July 2018, however it was lesser by 14% as compared to August 2017.

  •       In August 2018, 467 single family homes were sold as, almost 30 homes more than July 2018. Sales of apartments dropped by 13% whereas sales of townhouses increased by nearly 16%.

  •       The inventory of single-family homes fell marginally to 1,342 as compared to last year where it was 1352. However, the early fall market has seen considerably more inventory available as compared to the spring market in January 2018, where the inventory was just 749 properties.

Even though sales have been weak so far in 2018, it was expected as the industry savored exceptionally healthy years in 2016 and 2017. Most of the broad demography of the industry on Vancouver Island includes baby boomers and retirees, who are less affected by the stricter mortgage qualification rules.

It is expected that the sales will drop further by approximately 9% as compared to last year in the second quarter of 2018. The housing market in BC have benefited immensely over the past 4 years from the expanding provincial economy. However, with the economic growth now expected to slow down, this could affect the long-term average of 2018. The long-term sellers’ market does however appear to be moving into a more stable condition with considerable price reductions in prices of single homes in areas like Duncan, Campbell River and Parksville-Qualicum Beach. Sellers need to start pricing their properties better, today’s home buyers are well informed on property trends and rates and come prepared. Sellers need to be more realistic about the asking price as a more expensively quoted home will take much longer time to sell.

The benchmark price of a single-family home board-wide was $505,800 last month, which was 12% more than a year ago in August 2017. Benchmark prices for apartments saw an increase in prices by a staggering 20% from last year, going up to $317,700 whereas prices for Townhouses went up 15% now in the range of $413,600 as compared to August 2017. In August 2018, benchmark prices for single family homes in Campbell river saw an increase of 12% from last year where prices are now $509,200. Benchmark prices went up in Duncan by 8% from last year pushing prices up to $455,100. Nanaimo saw an increase by 10% from last year where benchmark prices for single family homes are now $546,200. Parksville-Qualicum and Port-Alberni benchmark prices increased by 13% and 22% respectively from last year.

Here are some quick stats on the real estate market on Vancouver Island:

Vancouver Island Real Estate Review.png

With increasing property prices, you will need the best rates on your mortgage to help you save more on monthly payments, and that’s what we’re here for! We at Oceanvale can help you get the best rates on your mortgage amidst the rising property prices, we’ve got you covered. We’ll ensure the rising property prices do not stop you from buying that dream home!

Reach out to us and find out how we can make your entire mortgage experience carefree!

Source: Statistics & Numbers from VIREB