As the holiday season draws near, we want to take a moment to thank you for your continued trust and support throughout 2024. This time of year gives us the opportunity to reflect on the milestones we’ve achieved together and to look forward to an exciting year ahead. Whether you’re buying, selling, or investing, Gillette & Associates is here to guide you with the expertise and local knowledge you’ve come to rely on.
Here’s a quick overview of what you’ll find in this month’s market update:
- Vancouver Island Real Estate Trends: A snapshot of sales, pricing, and inventory.
- Nanaimo Market Focus: Detailed insights into your local market.
- Canadian Real Estate Updates: How the national market is shaping up.
- Economic Indicators: Key trends in unemployment and interest rates.
- What’s Ahead for 2025: Projections and opportunities to watch for.
Let’s dive in and explore how these trends impact you, your home, and your future plans!
Vancouver Island Real Estate Trends – November 2024
The Vancouver Island market continues to demonstrate resilience, offering opportunities for buyers, sellers, and investors alike.
- Overall Activity: VIREB reported 566 unit sales in November 2024, a 17% increase from the previous year, with 3,478 active listings across property types (+3% YoY).
- Single-Family Homes: 267 homes sold, up 14% year-over-year, with a benchmark price of $778,400 (+2%).
- Townhome sales: 76 units, a 58% increase YoY, with a benchmark price of $544,400 (-1%).
- Condo sales: 62 units, a 13% increase YoY, with a benchmark price of $396,400 (-1%).
Regional Single-Family Home Prices:
- Nanaimo: $812,900 (+2%)
- Parksville-Qualicum: $885,900 (+3%)
- Campbell River: $713,700 (+7%)
With an absorption rate of 16%, the market remains balanced, providing favorable conditions for both buyers and sellers.
Nanaimo Market Highlights
In Nanaimo, the single-family home market continues to perform steadily. Inventory is up slightly, with 1,105 active listings, compared to 1,040 last year. Projections indicate that the region will close 2024 with approximately 7,400 total sales, surpassing 2023’s 7,114 sales. This upward trend reflects a strong local economy and continued buyer interest in the area.
Canada Real Estate and Economic Update
On the national level, sales rose 2.8% month-over-month, driven by activity in major markets such as Greater Vancouver, Calgary, and Toronto. Despite tighter market conditions, the Bank of Canada’s recent rate cuts have supported market momentum.
National Highlights:
- Home Sales: Up 26% year-over-year in November.
- Home Prices: The national average sale price increased 7.4% YoY.
- MLS® HPI: Climbed 0.6% month-over-month but remained 1.2% lower year-over-year.
Canada’s Labour Market and Interest Rates
- Unemployment: Rose to 6.8%, marking the highest rate since September 2021.
Bank of Canada: Reduced the key interest rate by 50bps in December, totaling 175bps of cuts for this cycle. While additional rate cuts are unlikely in the short term, this environment creates favorable borrowing conditions heading into 2025.
Looking Ahead to 2025
Economic Factors to Watch
1. Unemployment Trends
Unemployment rose to 6.8% in November 2024, reflecting potential softening in the labor market. If employment weakens further, it could impact consumer confidence and housing demand, particularly in higher-priced markets.
2. Consumer Spending Power
The rise in employment numbers in certain sectors (+50,500 jobs in November) suggests some resilience. However, inflationary pressures and slowing wage growth could limit spending on big-ticket items like homes.
3. Interest Rates and Affordability
With borrowing costs now lower, buyers have more purchasing power. However, the affordability gap in some regions remains a concern, especially in high-demand urban markets.
4. Global Economic Influence
Potential U.S. tariffs and other geopolitical factors may introduce uncertainty. These could impact Canadian exports and indirectly affect real estate demand in border regions.
Season’s Greetings from Gillette & Associates
As you celebrate the holidays, we hope your season is filled with warmth, joy, and the comforts of home. From all of us at Gillette & Associates, we wish you a wonderful holiday season and a prosperous New Year.
If you have any questions about the market or are considering making a move, don’t hesitate to reach out. We’re here to help make your real estate dreams a reality!