April 2018 Market Update

Sales of single-family homes in the VIREB area rose by 20 per cent month over month in April but remained static from one year ago.

Last month, 476 single-family homes sold on the MLS® System compared to 398 in March and 476 one year ago. The number of apartments changing hands in April decreased by six per cent year over year while townhouse sales rose by 26 per cent.

VIREB’s inventory of single-family homes climbed by eight per cent from March 2018 but decreased by six per cent from one year ago. The supply of apartments dropped in April, down 12 per cent from one year ago, but townhouse inventory rose by 30 per cent.

In April 2018, the benchmark price of a single-family home in the VIREB area reached $499,600, up 18 per cent from one year ago. The benchmark price of an apartment last month rose to $305,300, up 25 per cent board-wide from the previous year, while the benchmark price of a townhouse hit $393,200, a 22 per cent increase from April 2017.


B.C. Home Sales Dip After Strong December

BCREA reports that provincial MLS® Systems recorded 5,306 residential unit sales in January, an increase of 18.3 per cent from one year ago. On a seasonally adjusted basis, however, B.C. home sales dipped 10 per cent from December to January.

Total sales dollar volume hit $3.83 billion, a 37.4 per cent increase from January 2017. The average MLS® residential price was $721,477 last month, up 16.2 per cent from the previous year.

Compared to January 2017, market conditions tightened in all B.C. board areas except Victoria, where the sales-to-active-listings ratio declined from 46.3 per cent to 40.5 per cent. Despite this decline, the Victoria area remains a strong sellers’ market. Total active listings in the province dipped 8.6 per cent from last year.

December 2017 Mortgage Rate Forecast 
Canadian mortgage rates rose substantially in 2017 and are forecast to rise further in 2018. After beginning the year at or near historical lows for both the qualifying rate as well as 5-year contract rates, an acceleration of economic growth prompted a shift at the Bank of Canada and a withdrawal of stimulus  implemented to help the economy absorb the oil-shock of 2015.

Market Trends continued




October 2017 Market Update

In October 2017, 460 single-family properties sold on the MLS® System compared to 398 last October, an increase of 16 per centt. Month over month, single-family home sales dipped by 10 per cent from September. This decline is likely the result of ongoing inventory challenges, however, not a cooling market.

Although the supply of single-family homes has been increasing each month since VIREB hit its historic low of 859 in December 2016, inventory decreased in October, dropping to 1,138, down two per cent from last year and eight per cent from September.

BCREA reports that the housing market in B.C., particularly in the southern half of the province, continues to thrive due to strong economic fundamentals. Government policy decisions, including slightly higher interest rates and the new mortgage stress test, could affect the housing market, but it's too early to say in what way.

These attempts to temper rising home prices – aimed mainly at overheated markets in Vancouver and Toronto – will likely be counterbalanced by demographic factors, such as baby boomers entering their retirement years, millennials purchasing their first homes, and interprovincial migration.

In the VIREB area, the October 2017 benchmark price of a single-family home rose to $463,800, up 17 per cent from one year ago. Apartments and townhouses also recorded higher benchmark prices board-wide in October, up 28 per cent and 22 per cent respectively.



Market Trends July 2017





Market Trends June 2017


January 2017

Market Trends from the BC Real Estate Association

The British Columbia Real Estate Association (BCREA) reports that housing demand in the VIREB area and throughout British Columbia is being driven by a provincial economy that continues to outperform the rest of Canada. Although BCREA does expect B.C.’s economy to weaken somewhat this year, strong job and population growth will continue to have a net positive effect on the housing market.
 
“Although BCREA anticipates that less robust economic conditions combined with government policy constraints will slow housing demand by more than 15 per cent in 2017, unit sales should remain well above the 10-year average of 85,000,” says Cameron Muir, BCREA Chief Economist. “Sales in the VIREB area this year will likely trend lower than in 2016, but this is merely the market returning to more normal levels from last year’s unprecedented sales activity.”
 
Janice Stromar, 2017 VIREB President, reaffirms that housing sales in the VIREB area would be much higher if there were more homes available.
 
“We’ve been in a sellers’ market for several months now, with buyers snapping up available properties and multiple offers a common occurrence,” says Stromar. “But real estate is cyclical, and these conditions won’t last forever. If you’ve been thinking of selling, I strongly encourage you to take advantage of our current market situation.









December 16, 2016

New B.C. Home Owner Mortgage and Equity Partnership Program

Under a new program announced today by B.C. Premier Christy Clark, first-time home buyers can obtain an interest-free, payment-free loan from the B.C. government to help with the down payment on a new house. The B.C. Home Owner Mortgage and Equity Partnership will provide a maximum of $37,500 – or up to five per cent of the purchase price – to home buyers through a 25-year loan that is interest-free and payment-free for the first five years.


August 25, 2016

Record B.C. Home Sales Forecast Despite Vancouver Slowdown 
BCREA released its 2016 Third-Quarter Housing Forecast Update today. The report notes that MLS® residential sales in the province are forecast to climb 10.4 per cent to a record 113,000 units this year, eclipsing the previous record of 106,310 units in 2005. Housing demand is expected to moderate next year, with home sales declining nearly eight per cent to 104,400 units. However, housing demand should remain well above the 10-year average of 85,000 unit sales.

To view the full forecast, click here.


August 24, 2016

Housing Market Slows to a Simmer in B.C.

BCREA reports that housing demand has moderated in many regions of the province after several record-setting months.

The MLS System® processed 9,900 residential sales last month, down 3.4 per cent from July 2015. Total sales dollar volume was $6.57 billion in July, up 5.4 per cent compared to the previous year. The average MLS® residential price in the province rose 9.1 per cent year over year to $663,411.

Year to date, B.C. residential sales dollar volume increased 45.5 per cent to $56.5 billion when compared to the same period in 2015. Residential unit sales climbed by 25 per cent to 77,261 units, while the average MLS® residential price rose 16.4 per cent to $731,189.


July 2016 Market Update

Home sales in the Vancouver Island Real Estate Board area cooled somewhat last month but were 19 per cent higher than in July 2015.

Last month, 608 single-family homes sold on the MLS® System compared to 512 last July. Month over month, sales decreased by 15 per cent from the 712 sales processed in June 2016. Active listings of single-family homes in July totaled 1,577, down 34 per cent from the 2,391 reported in July 2015 and beating June's figure of 1,621. This is a historic low for VIREB, which began tracking inventory levels in 1999. The last time inventory was this low occurred in 2005 when the number of single-family homes for sale dropped to 1,629.

The July 2016 benchmark price of a single-family home in the VIREB area was $379,900, up just under 12 per cent from one year ago. The benchmark price of an apartment rose by 9.77 per cent to hit $207,900 while the benchmark price of a townhouse increased to $277,900, up just over 10 per cent from one year ago. The average price of a single-family home last month was $409,816, an increase of 12 per cent over July 2015.




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