After returning from my networking group in Scottsdale, Arizona with the top Realtors from around the world, one thing is certain, BC is a hot topic when it comes to Real Estate. A few years ago, it was hard to get stage time to talk about Vancouver Island or Nanaimo, but now it seems to be a topic of interest.
The high prices in Vancouver may have ignited the discussion, and our lower Canadian Dollar definitely fueled the topic, but it more importantly shed light on the amazing destination that we all live in. Vancouver Island is recognized as a highly desirable and affordable location to these global elites, and it was good to be able to talk about and network with these agents.
Nanaimo’s benchmark price rose 22 per cent to $461,600, while the Parksville-Qualicum area saw its benchmark price increase by 20 per cent to $477,700.
Low Inventory continues to have an impact on some price ranges in Nanaimo, causing lower sales.
The Vancouver Island Real Estate Board reports that in April 2017, 478 single-family properties sold on the MLS® System compared to 659 last April, a decrease of 27 per cent. Month over month, sales edged slightly lower from March.
Inventory of single-family homes declined by 33 per cent from April 2016, with 1,122 active listings available last month compared to 1,694 one year ago. Additional listings have entered the market since VIREB hit its historic inventory low of 859 in December 2016. Active listings rose to 893 in January, 949 in February, and 1,023 in March.
“Properly priced single-family homes between $400,000 and $600,000 rarely last and some can generate multiple offers. Limited supply, combined with high demand, means it has been a sellers’ market for months. That said, even though we are in a sellers’ market, homeowners still need to price their home correctly. Houses can sit unsold for months if they are priced higher than the market will bear.” -2017 VIREB President
“Real estate is cyclical, and consumers need to take advantage of these market conditions because they won’t last forever,” says Stromar. “When the market does correct itself – and it always does – it usually happens without warning.”
I remember consulting to a developer in Calgary, warning back in 2012 that markets can change quickly, like the ‘Black Swan’ event coined by Taleb. A ‘black swan’ is an event or occurrence that deviates beyond what is normally expected of a situation and is extremely difficult to predict. Like the oil crash that started at the end of 2014.
We are experiencing a few factors that I feel will continue to keep our market active for the foreseeable future; low interest rates, baby boomers retiring out West as long as prices remain feasible, the immigration we are now seeing into Canada from the US, as well as a low Canadian dollar.
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