Last month, 345 single-family homes sold on the Multiple Listing Service® (MLS®) System compared to 413 the previous month and 347 in September 2018. In the apartment category, 85 units sold last month, while 51 townhouses changed hands in September.
The September statistics indicate that some buyers are turning to multi-family properties, but it is too early to say whether this is an anomaly or the beginning of a trend. As for the reasons behind this shift away from single-family homes, it could be a combination of factors, including affordability, Guideline B20, and the speculation tax in Nanaimo.
Prices in the VIREB area are still rising year over year, but the magnitude is decreasing. The benchmark price of a single-family home board-wide was $523,100 in September, a four per cent increase from one year ago and up two per cent from August. (Benchmark pricing tracks the value of a typical home in the reported area.) In the apartment category, the year-over-year benchmark price rose by two per cent, climbing to $298,900 but slightly lower than in August. The benchmark price of a townhouse rose by four per cent board-wide, hitting $411,100 last month, which was two per cent lower than August’s benchmark of $417,300.
Nanaimo’s benchmark price rose by two per cent to $569,200 in September while the Parksville-Qualicum area saw its benchmark price increase by three per cent to $591,700.
The Home sales recorded via Canadian MLS® Systems advanced for the seventh consecutive month, raising them 18 per cent above the six-year low reached in February 2019 but leaving them about 8 per cent below highs reached in 2016 and 2017.
Home sales have improved by more than expected in recent months and there are early signs that home price declines in the Lower Mainland of British Columbia and across the Prairies may be abating. Meanwhile, home prices are re-accelerating across Ontario’s Greater Golden Horseshoe region.
Each market has its own unique trends and micro-markets right down to property types based on consumer demand, so don’t take the overall market conditions and assume they impact your home type. If you are thinking of buying or selling let me know and I would be happy to put my 26 years of trend forecasting to work for you.