As the summer of 2024 progresses, the Vancouver Island Real Estate Board (VIREB) has reported a mix of trends in its latest real estate statistics. The housing market on the island is navigating through a period of transition, marked by significant changes in both sales activity and inventory levels.

Sales and Listings Overview

In July 2024, VIREB recorded 737 unit sales across all property types, which reflects a somewhat stagnant market with a modest decrease in activity compared to the same month last year. Active listings saw a notable increase, reaching 4,559 properties on the MLS® System. This represents a healthy inventory level that is shaping the current market dynamics.

Focusing on specific categories:

  • Single-Family Homes: There were 363 single-family homes sold in July, a decrease of 11% from July 2023 but a slight increase of 1% from June 2024. The active listings for single-family homes stood at 1,596, a significant rise from 1,092 last year.
  • Condo Apartments: Sales of condo apartments totaled 87 units last month, showing a 9% decrease from a year ago but a 6% increase from June. The inventory for condo apartments increased to 455, up from 312 in July 2023.
  • Row/Townhouses: The row/townhouse sector saw 99 units sold, which is a 16% increase from the previous year and a 9% rise from June. The number of available row/townhouses also grew to 342, compared to 262 last year.

Market Conditions

The market’s absorption rate is currently at 16%, with approximately six months of inventory, positioning the VIREB housing market in balanced territory but leaning slightly towards a buyers’ market. This shift indicates that while inventory levels have increased, the overall market conditions are stabilizing, giving buyers more options and time.

VIREB CEO Jason Yochim noted that this year’s market behavior is unusual. The traditional spring and summer activity did not materialize as expected, with both buyers and sellers appearing to hold back despite favorable conditions such as interest rate reductions and increased inventory. “Inventory has risen considerably, and it’s been five years since active listings in the VIREB area were at this level, so buyers have more choice and more time to wait,” Yochim observed. “The same holds true for sellers, so there seems to be a waiting game going on.”

Price Trends

In terms of pricing, the benchmark prices for various property types showed mixed movements:

  • Single-Family Homes: The board-wide benchmark price was $784,200 in July, marking a 2% increase from the previous year but a slight dip from June.
  • Condo Apartments: The benchmark price was $414,300, up 1% from both the previous year and June.
  • Townhouses: The benchmark price for townhouses was $540,800, down 2% from July 2023 and slightly lower than June.

Regional Highlights

Regional price variations offer a more nuanced picture:

  • Campbell River: The benchmark price for single-family homes was $705,700, a 4% increase from the previous year.
  • Comox Valley: The benchmark price rose by 5% to $842,100.
  • Cowichan Valley: The benchmark price was $775,800, reflecting a 1% decrease from the previous year.
  • Nanaimo: Prices increased by 1% to $815,800.
  • Parksville-Qualicum: The benchmark price reached $899,900, a 1% rise from the previous year.
  • Port Alberni: The price of a benchmark single-family home was $531,800, up 1% from last year.
  • North Island: The benchmark price dropped by 2% to $431,300.

Looking Ahead

Despite a strong local economy, the Vancouver Island housing market remains subdued, as reported by the British Columbia Real Estate Association (BCREA). While economic growth persists in several regions, Vancouver Island’s market is still adjusting to higher inventory levels and evolving buyer and seller expectations.

As we move forward, it will be crucial to monitor how these trends develop, especially as we approach the fall and winter months. Buyers and sellers alike should stay informed and adaptable to the shifting market conditions.

Stay tuned for more updates and insights into Vancouver Island’s real estate landscape!