In February 2017, 347 single-family homes sold on the Multiple Listing Service (MLS) System compared to 406 last February, a decrease of 15 per cent. Sales rose by 42 per cent from January 2017, which saw 245 sales.
Inventory of single-family homes declined by 38 per cent from February 2016, with 949 active listings compared to 1,529 one year ago. However, the 949 available properties reflect a six per cent increase over January, an encouraging development since the lack of inventory continues to challenge consumers and Realtors in the VIREB area.
The British Columbia Real Estate Association (BCREA) reports that strong economic fundamentals are fuelling housing demand throughout British Columbia, with the B.C. economy continuing to outpace the rest of Canada. Among other factors, increased population growth is a significant force driving the provincial housing market.
“In the first three-quarters of 2016, net migration to British Columbia hit 50,000 people,” says Cameron Muir, BCREA Chief Economist. “Although most of those residents will end up on the Lower Mainland, the effects of this influx will inevitably trickle into other markets.”
Although BCREA expects the provincial economy to weaken somewhat this year, consumer confidence and job growth should continue to have a net positive effect on the housing market. After dipping in late 2016 and early 2017, overall sales activity in the province appears to be trending upwards again, and that is certainly happening on Vancouver Island.
In fact, sales in the VIREB area would no doubt be much higher if there were more properties available, says Janice Stromar, 2017 VIREB President.
“The Nanaimo market in February was busier than I’ve ever seen,” says Stromar.
“Single-family homes in the $450,000 range are practically flying out the door, and multiple offers are the norm, not the exception.”
The VIREB area has been a sellers’ market for several months now, and Stromar encourages people to list their homes now.
“Real estate is cyclical, and consumers need to take advantage of these market conditions because they won’t last forever,” says Stromar.
She adds that connecting with a local Realtor is especially crucial in a competitive housing market.
