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Inventory up but Island still a sellers’ market

Home sales down, inventory up, but real estate market still favours sellers
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Prices, inventory were up and sales dropped slightly in June, but the Island is still a strong sellers’ market, according to Vancouver Island Real Estate Board’s most recent report. (News Bulletin file photo)

It’s still a sellers’ market despite modest inventory increases, according a recent update from the Vancouver Island Real Estate Board.

In a press release published Tuesday, VIREB reports that in June, 621 single-family properties sold on the Multiple Listing Service System compared to 712 in June 2016, a 13 per cent drop.

Month over month, sales dipped slightly in June compared to 630 in May.

Single-family home inventory dropped by 20 per cent from June 2016, with 1,297 active listings available last month compared to 1,620 one year ago.

The number of active listings of single-family homes has risen steadily each month since VIREB’s historic low of 859 in December, but demand continues to exceed supply with well-priced properties selling fast.

“We’ve been in a sellers’ market for months now, and buyers are snapping up available properties,” said Janice Stromar, 2017 VIREB president, in the release. “Multiple offers are commonplace, which is frustrating for buyers and their agents. That said, sellers still need to price their home correctly because overpriced homes can sit unsold for months.”

Stromar said sellers share buyers’ frustration when they sell their homes, but can’t find another property to purchase. Still, homeowners should take advantage of a hot market. She advises buyers to be patient and prepared with financing pre-approved and a comfortable price point decided upon so they can act quickly when deals come up.

She also recommends buyers and sellers connect with a local real estate agent who will have specific knowledge about current market conditions that can seem chaotic and confusing.

Economist Brendan Ogmundson of the B.C. Real Estate Association affirms strong economic fundamentals continue to fuel housing demand in the province.

“A healthy provincial job market, low interest rates, and consumer confidence are all contributing to robust housing demand throughout most of British Columbia,” said Ogmundson. “BCREA expects the provincial economy to grow by 3.3 per cent this year, which will likely be the highest in Canada.”

The benchmark price of a single-family home in Nanaimo rose to $479,300 in June, up nearly 19 per cent from 2016. Price hikes across the region ranged from 15 per cent in Parksville-Qualicum to 21 per cent in the Comox Valley.

The benchmark price of an apartment in June rose 28 per cent over 2016, with Comox Valley posting a 42 per cent hike and the townhouse market bumped in June too with VIREB-wide price increase of 24 per cent and a 40 per cent jump in the Comox Valley.

To learn more visit www.vireb.com.