Single-family home sales were up 24 per cent in 2016 as low levels of inventory continue to create an opportune time for a seller to put their property on the market.
A total of 6,063 single-family homes were sold on the Multiple Listing Service (MLS) in 2016, an increase of 24 per cent over the 4,885 sales recorded previously.
In Cowichan Valley there were 1031 unit sales, an increase of over 30 per cent compared to 2015.
Nanaimo’s jump hit 19 per cent with just shy of 1700 homes sold.
RE/MAX of Nanaimo realtor John Surtees said in Ladysmith there has been a high demand which has caused values to increase.
“It wasn’t until late 2015 that we saw our local inventory levels get to a low level that we were able to have houses come onto the market where they were exploring higher prices,” he said.
In Cowichan Valley, the average price of a single-family home rose 8 per cent to $389,947, while in Nanaimo it increased 14 per cent to $447,336.
Surtees said downsizing continues to be common as are people moving around from other areas on the mid-Island.
“We’re also seeing a lot of people from within the areas moving around and purchasers who are seeing the value in the Ladysmith, Saltair, Chemainus areas that are moving from centres like Duncan and Nanaimo,” he said.
According to statistics provided by VIREB, which represents approximately 90 realtor member offices north of Victoria, at the end of December of 2015 there were 1,373 single-family homes on the market and this year there were only 859.
“Every month we say this is historically low inventory and then it goes down again,” said VIREB’s Janice Stromar.
The British Columbia Real Estate Association (BCREA) notes that housing demand throughout 2016 was driven by a provincial economy that outperformed the rest of the country. However, BCREA does expect the housing market to weaken somewhat this year.
“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,” said 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.”
Earlier this month the provincial government launched its first-time homebuyers program.
The loan, which will remain interest- and payment-free for five years, will match downpayment loans up to $37,500 on homes costing less than $750,000.
Surtees said the program as well as any hike in interest rates could impact the market.
“Some of the banks have increased their rates because of the higher cost of them doing business but it will be interesting to see if the government does anything,” he said.