Low inventory and high prices spark sellers’ market on Vancouver Island.

Posted on November 29th, 2016 at 3:00 am


While a moderating trend in sales activity has hit Vancouver Island in the past few months, market conditions for sellers couldn’t be better with low inventory and high benchmark prices, particularly in the Nanaimo region – a trend shared throughout the Parksville, Qualicum Beach areas.

In October, the number of active listings of single-family homes dipped to its lowest number ever recorded according to new stats published by the Vancouver Island Real Estate Board. This lack of inventory continues to be a challenge, resulting in frustrated buyers caught in a classic case of supply and demand.

“Sellers are in the driver’s seat right now, but consumers need to realize that sellers’ markets don’t last forever,” said Jason Finlayson, the former President of VIREB. “If you’re thinking of putting your home on the market, now is the time.”

Benchmark prices on homes continue to see rising numbers when compared to 2015. Last month, a single-family home in the VIREB area sold for more than 15 per cent than the same month last year; even higher in certain areas throughout Nanaimo. Sale prices of apartments and townhomes also strengthened, posting similar gains on year-to-year numbers.

British Columbia’s strong economic outlook, thanks to employment growth and an influx of Canadians who have migrated from out-of-Province, continues to be a driving factor contributing to a robust real estate market in the VIREB area.

New mortgage rules and the foreign buyers tax have created concern in the world of real estate, resulting in a couple of consecutive flat sales months for Vancouver. However, experts state that there appears to be no negative fallout from any of these factors on Vancouver Island’s market. Typically, summer to fall numbers have shown a seasonal cooling, which is also a likely contributor to reduced sales activity in October.

Kelsey McPherson