October 2021 Duncan BC Real Estate Review

By David Lowes, Duncan Realtor

The Cowichan Valley housing market has seen a continuous influx of buyers because of our beautiful area and the ability for people to work remotely resulting in a very low inventory of houses, townhouses and condos from Mill Bay to Ladysmith and all points in between.

Real Estate Inventory Duncan & Cowichan valley

At the end of October, the Cowichan Valley and Duncan real estate inventory for single-family dwellings dropped to only 64 active homes being listed, which is down from 107 homes on the market October last year.

Our average sale price for single-family dwellings throughout the Cowichan Valley in October 2021 was $787,942 while in September 2021, our average sale price was $785,945.

In the Duncan, BC area more houses sold than were listed on the market – 66 houses were listed and 75 houses sold in October – we call this our sales to list percentage which was 113%.

Real Estate Inventory 2022

Homes are selling over listing prices. The average home price sale is 104.91% of list price. This is still a strong seller’s market with houses selling over list price which is expected with low inventory and multiple offers.

The average amount of time a single-family dwelling sits on the market is 21 days. Last month homes were sitting on the market for an average of 22 days.

With looming interest rate hikes and increased prices being projected into 2022 I expect affordability and low inventory will remain issues for some time throughout the Cowichan Valley.

See the current house statistics media release information below and for further information, visit the Vancouver real estate board.

MEDIA RELEASE – NOVEMBER 1, 2021

HOW LOW CAN HOUSING INVENTORY GO?

NANAIMO, BC – The predominant theme running through the housing market in the Vancouver Island Real Estate Board (VIREB) area is one of “different month, same issues.”

By category, 398 single-family homes sold in October, a 23 three per cent decrease from one year ago. There were 122 condo apartment sales last month, a six per cent decrease from October 2020. In the row/townhouse category, 88 units sold compared to 98 the previous October. However, there is little doubt that a dearth of active listings is causing the sales decline.

Buyers continue to face frustrating hurdles caused by historically low inventory, with little relief in sight. Active listings of single-family homes were 46 per cent lower last month than in October 2020 and dropped by 18 per cent from September. VIREB’s inventory of condo apartments declined by 63 per cent from one year ago and was 26 per cent lower than in September. However, there was some positive news for townhouse buyers. While active listings in this category dropped by 39 per cent year over year, inventory increased by 13 per cent from September.

In its most recent housing forecast, the British Columbia Real Estate Association (BCREA) stated that the supply situation is especially severe in markets outside the Lower Mainland, including Vancouver Island. Listings activity has been lacklustre, and even if sales come back down to long-run average levels, total listings would need to nearly double to bring markets back into balance. The road to doubling those listings lies in increasing the housing supply.

“Unless demand drops significantly or more inventory comes online through new construction, VIREB’s inventory situation likely won’t improve,” says Ian Mackay, 2021 VIREB President.

Mackay welcomes the news that the Government of British Columbia is giving local governments more tools and powers to simplify and speed up their development approvals processes, helping to build the homes people need more quickly.

“Real estate is all about supply and demand. New construction isn’t a quick solution, but it’s the only one that can address the housing shortage, and, hopefully, temper prices,” said Mackay.

The board-wide benchmark price of a single-family home reached $757,300 in October, up 31 per cent year over year. In the apartment category, the benchmark price hit $397,200 last month, a 30 per cent increase from October 2020. The benchmark price of a townhouse increased by 34 per cent in October, reaching $584,700.

In Campbell River, the benchmark price of a single-family home hit $663,000 in October, up by 29 per cent from the previous year. In the Comox Valley, the year-over-year benchmark price rose by 31 per cent to $779,000. The Cowichan Valley reported a benchmark price of $756,900, an increase of 30 per cent from October 2020. Nanaimo’s benchmark price rose by 28 per cent, hitting $755,500, while the Parksville-Qualicum area saw its benchmark price increase by 34 per cent to $887,300. The cost of a benchmark single-family home in Port Alberni reached $504,000, a 36 per cent year-over-year increase. The benchmark price for the North Island rose by 55 per cent, hitting $418,800 in October.

ABOUT VIREB

VIREB represents over 1,000 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®).

HPI Note: Areas with insufficient data do not generate statistics and are not included in the HPI graphs.

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About David Lowes

David has been a Duncan REALTOR® serving clients throughout the Cowichan Valley at RE/MAX Island Properties (formerly RE/MAX of Duncan) for over 10 years.

He loves helping people find the home of their dreams, and working with his sellers to get the best possible price and terms for their house sale.

If you have any questions, please call him on 250-748-7200.