The weather was not the only thing that was hot this summer. The Vancouver Island property market showed no signs of slowing down. With less homes on the market and higher demand for island property, this market is definitely still a sellers’ market. According to the Vancouver Island Real Estate Board (VIREB) single-family home sales were less than last year at the same time. How can it be that fewer homes were sold in such a strong market? It is simply that less inventory is on the market for people to purchase, which is causing the strong housing market. So even though fewer sales happened, the houses that are on the market are selling for more money and faster than the same time last year.
The number of single-family homes on the market has decreased by 13 % from July 2016, with 1,367 active listings available July 2017 compared to 1,575 last year. This is still a reasonable number of houses on the market. In December 2016 VIREB reported a historic low of 859 single-family homes on the market. With current conditions, the housing market is still seeing demand exceed supply, but it is not as crazy as it was back in December 2016.
How much is a home worth in your area?
Many of us want to know what our most expensive asset is actually worth and how it compares to the same property in a different area on the island. The following list of single-family housing prices was gathered for you to see what a comparable property is worth and how the price changed from the same time last year:
- Campbell River - $361,800 - increased by 20% from July 2016.
- Comox Valley - $453,300 – increased by 23% from July 2016
- Duncan - $407,700 – increased by 18% from July 2016
- Nanaimo - $490,500 – increased by 19% from July 2016
- Parksville-Qualicum - $506,700 – increased by 14% from July 2016
- Port Alberni - $250,000 – increased by 19% from July 2016
What does this mean for buyers?
The British Columbia Real Estate Association (BCREA) reports that the current housing market has not seen housing inventory this low in over a decade. It is no wonder that this has created a major upward pressure on house prices. This is the reason that it is a strong sellers’ markets, but that does not mean buyers should not buy property.
There is no crystal ball to say what will happen in the property market, but if you are buying in a sellers’ market then remember the following things:
- If you find a home you like – Buy It! Don’t wait for someone else to snatch it up.
- Ensure you have your financing in place before shopping around. You don’t want to find the perfect home and then scramble around trying to get financing. It may sell in the process.
- In a seller’s market, many homes sell above list price. Before making an offer, talk to your realtor and pick a number that you are comfortable spending.
What does this mean for sellers?
Regardless of facts and figures, the main benefit for sellers in a strong seller’s market is a quick sale. This means less stress waiting around for people to come and view your home. It also means you won’t have to keep your house in showroom conditions for too many weeks. However, you should still remember a couple of things when selling in this market:
- Price your home correctly. An overpriced home can sit unsold for months, regardless of the market conditions. The longer it sits, the less desirable it is for buyers.
- It is crucial to contact a local real estate agent in any market condition, but especially crucial in a competitive housing market. You want someone who will know what a fair price is, and will be a strong presence when representing your home to the buyer’s real estate agent.
If you're thinking about buying or selling your home, get in touch with one of our selling experts or give us a call at (250) 585-2601 today! Our team will help you get on the right track, making sure you get the most value for your home.