The Neal Estate Team's Real Estate Market Update for Vancouver Island for December 2021

Inventory continued to decrease in November 2021 continuing a trend of historic under-supply in the Vancouver Island housing stock. Condo listings topped the drop with a 69% year-over-year decrease and a 23% decrease from October. Single family homes dropped 44% year-over-year and 24% from the previous month.

Sales volume, both due to seasonal factors and the highly restricted inventory, also decreased in November. Single-family homes specifically had 353 sales which was 16% fewer than last year. The condo segment saw 110 units change hands in November which was three units more than November 2020 and 12 sales less than October.

While demand is still relatively red hot in comparison to the amount of available listings, there may be some early warning signs of market changes coming. For example, if interest rates continue to creep up (which they have already started doing) we could see a significant decrease in the pool of potential buyers. Also, anecdotally within our brokerage, we have been hearing of lots of intentions from sellers to list in the upcoming year and also listing searches have recently been decreasing. If demand declines and supply increases, we will know what that means.

For any homeowner sitting on the fence about listing right now vs waiting, it is worth considering getting a jump on the spring market. There are currently more than enough buyers to go around and historically low competition from other listings. Not to mention, borrowing money is still cheap enough for buyers to stretch a bit in the still prominent multiple offer situations. Spring will bring more homes onto the market, bringing more options for buyers, and also might see some regulatory or interest rate changes which will not benefit the potential seller.

While it might sound like great news for buyers, we are still so firmly in a sellers market that even something like rising interest rates are more likely to lead to price stagnation than anything like a decrease in house prices. Not to mention, the cost of the mortgage could be on the rise. That being said, real estate forecasters were shooting at about 0% for the last two years and the market isn’t nearly normal enough to comfortably predict what’s coming with any assurity.

The board-wide benchmark price (meaning the average price according to the home price index) for a single-family home hit $769,700 in November which was a 33% increase from November last year. The Benchmark price for condos came in at $401,100 last month which was a 29% increase from last year and townhomes rose 35% hitting $594,400.

If you would like to know how we are beating the market, helping our clients win, and keeping people moving safely, please call or test 250-386-8181 or simply click Here for a FREE consultation. Find new listings before they get to MLS and ask us about featuring your home on VancouverIslandComingSoon.com, where we generate interest while you're getting ready to come to market. Ask us also about our FREE Staging Consultation for advice on preparing your home in its best light for the market, ensuring you the best results.  

Stay safe,

The Neal Estate Team
Your Victoria & Vancouver Island Real Estate Experts
“Let our experience be your guide
www.RonNeal.com
www.HomesOnVancouverIsland.ca