As our Vancouver Island market can be impacted by the Vancouver housing market, it is important that I listen to the “noise” of what is happening in and around Vancouver, to differentiate what could be considered media hype and what is actually happening on the ground.
I have seen a lot of recent articles on what many consider the “top” of the market. However, coming off a strong spring market, it is normal for some areas to have a slight increase in inventory, including our local market.
In Vancouver, it is too soon to tell if this is just a slight cooling from a very heated spring boom or a longer term trend. Any slight change is picked up by media, adding the dramatic labels which can effect buyers, ultimately causing them to sit on the fence. It is important to watch over the next few months before determining if this is just the market taking a breath or if a reversal in play.
A recent interview I watched on BNN from LePoidevin, gives an insight into the Vancouver housing market, interestingly noting that some of his recent interviews were more bearish, as this one he seemed to pull back and retract slightly.
Regardless of the Vancouver market, any slowdown they may have will not impact us as much. We simply move much slower, and it may present people from shifting lifestyles while removing some money from the market and taking advantage of the affordable options on Vancouver Island. Here are some recent stats, which are not even close to the 30%+ increase that has happened in Vancouver over the last year.
In June 2016, the benchmark price of a single-family home in the VIREB area was $373,200, up 11 per cent from one year ago. The benchmark price of an apartment rose by 6.53 per cent to hit $202,600 while the benchmark price of a townhouse increased to $275,200, up 10.56 per cent from one year ago. Benchmark pricing tracks the value of a typical home in the reported area. The average price of a single-family home last month was $410,259, up 14 per cent from June 2015.
Also, as noted by Brendon Ogmundson, BCREA Economist “The provincial economy is firing on all cylinders and continues to lead the country by a significant margin, which is fueling the housing market,”. “Job growth in B.C. is twice that of Ontario, our closest economic competitor, and is especially strong on the Lower Mainland and in Victoria.” Ogmundson adds that although BCREA does expect to see some price relief in the Vancouver housing market, current market conditions will likely prevail for the rest of 2016.
Below is Nanaimo sales and average price graph for your reference.
