At the end of December, our real estate inventory for single-family dwellings in the Cowichan Valley was down slightly at 145 active homes compared to 183 active homes in November.
Real Estate Inventory Duncan & Cowichan Valley
Our average sale price for a single-family dwelling in the Cowichan Valley in December was $772k, a slight decrease from November, which was $788k.
Our inventory sell/list ratio rose to 66.67% (39 listed/26 sold) in December, an increase from the 60.87% (69 listed/42 sold) in November
Homes are no longer selling over list price – the market saw sale prices averaging 97.47% of list price – consistent with results from the last few months.
Our average ‘days on the market’ was 45 in December, slightly down from 48 days in November.
We are witnessing more realistic pricing of homes as sellers try to match up with buyers’ expectations and reduced buying power.
With our increased mortgage rates, and despite our low inventory, we have transitioned fully from a seller’s market to a buyer’s market. Sellers are strongly advised to get ahead of the market and keep their pencils sharp on their house prices to be relevant.
Please contact our team with any real estate-related questions; we’re here to provide you with the guidance and advice needed for this type of market.
MEDIA RELEASE - January 3, 2024
LACKLUSTRE DECEMBER CLOSES OUT 2023
NANAIMO, BC – The Vancouver Island Real Estate Board (VIREB) recorded 7,297 unit sales in 2023 compared to 11,045 in 2021 and 7,810 in 2022. High interest rates are primarily to blame for the weaker sales, as there was significant demand, but many buyers opted to wait for an anticipated 2024 rate cut.
Last month, there were 151 sales of single-family homes in the VIREB area, down 23 per cent from last December and 36 per cent from November. Sales of condo apartments in December came in at 39, increasing by 11 per cent year over year but down 30 per cent from November. In the row/ townhouse category, 39 units changed hands last month, an increase of 50 per cent from one year ago and down 22 per cent from November 2023.
Active listings of single-family homes dropped to 796 in December from 895 one year ago and 1,040 in November. VIREB’s inventory of condo apartments was 257 last month, up from 248 in December 2022 but down from November’s 285 listings. There were 244 row/townhouses for sale last month compared to 229 one year ago and 282 in November.
“Based on conversations REALTORS® are having with clients, there is certainly demand out there, so we’re expecting a fairly busy spring,” says Kelly O’Dwyer, 2023 Chair. “However, there are policy changes coming in 2024 that could impact the real estate market, such as new rules surrounding short-term rentals that take effect on May 1.”
Another potentially significant policy change that could impact sales is the B.C. government’s decision to expand the speculation tax to Parksville, Qualicum Beach, Courtenay, Comox, and Cumberland. Residents in those communities must declare for the first time in January 2025 based on how they use their property in 2024.
The board-wide benchmark price (MLS® Home Price Index) of a single-family home was $753,000 in December 2023, up five per cent from one year ago and down one per cent from November. In the apartment category, the benchmark price was $384,500 last month, a year-over-year increase of three per cent and a one per cent decrease from November 2023. The benchmark price of a townhouse last month was $544,200, up two per cent from December 2022 and down two per cent from November.
In Campbell River, the benchmark price of a single-family home was $653,100 last month, up seven per cent from the previous year. The Comox Valley’s year-over-year benchmark price rose seven per cent to $820,600. In the Cowichan Valley, the benchmark price was $763,400, a four per cent increase from December 2022. Nanaimo’s year-over-year benchmark price rose by five per cent to $781,900, while the Parksville-Qualicum area saw its benchmark price increase by two per cent to $845,200. The cost of a benchmark single-family home in Port Alberni was $530,700, up three per cent from the previous year. For the North Island, the benchmark price of a single-family home dropped slightly to $426,300. However, prices of single-family homes, condo apartments, and row/ townhouses dipped from November to December in most zones.
Please note: The Vancouver Island Real Estate Board (VIREB) transitioned to a new MLS® System in July 2020 and now uses a significantly different data model, which has affected our categories and terminology. For the board-supplied graphs, single-family is now referred to as single-family detached, apartment as condo apartment, and townhouse as row/townhouse, which now includes patio homes. However, when reporting HPI numbers, VIREB still refers to single-family, apartment, and townhouse in the media release.
ABOUT VIREB
VIREB represents over 1,100 REALTORS® in nearly 90 member offices on Vancouver Island, from the Malahat in the south to the northern tip.
VIREB cautions that average price information can be useful in establishing trends over time but does not indicate the actual prices in centres comprised of widely divergent neighbourhoods or account for price differential between geographic areas.
Trademarks are owned or controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA (REALTOR®) and/or the quality of services they provide (MLS®).
Visit our website for updated information at www.vireb.com.
HPI Note: Areas with insufficient data do not generate statistics and are not included in the HPI graphs.