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

Record low inventory coupled with persistent demand continued on into the new year. The Vancouver Island Real Estate Board area, in the first month of 2021, had 286 single family homes sold, up 66% from the same month last year. Condo sales also increased year over year as many buyers were pushed into this segment (up 46%). In a slight respite from the flurry of activity though, sales were actually down 5% and 26% respectively, compared to December 2020 board-wide.

Very likely, the slight decrease in sales from December to January is actually a product of the dwindling inventory. The end of January saw 420 active single family homes available on the market (compared to 421 at the end of December) and 212 condos (down 9% from December). January is traditionally the month of the lowest sale to listing ratio as sellers get a jump on the spring market and buyers are open to waiting to see what new inventory will come on. This does not seem to be the case for early 2021.

The combination of the above factors is certainly leading to rising prices across Vancouver Island. Many listings, especially single family homes/well-priced properties, are selling in multiple offers. It is the nature of statistics to lag behind the actual market value by about a month. Bearing that in mind, we see that the board-wide benchmark price for a single family home rose 12% year over year to hit $596,500. Condos rose 10% in the same period to hit $316,400.

Looking at prices regionally:

Low-interest rates are certainly one of the primary driving forces in the market and the increase in buying power is quickly being met by an increase in price. Simply put, prices have shifted. Further, they have shifted to an extent not yet quantified by statistics. Now is a very important time to price homes for sale properly and to come supremely prepared to the negotiation table on the buyer's side.

If you would like to know how we are beating the market, helping our clients win, and keeping people moving safely, please click Here for a FREE consultation. Find new listings before they get to MLS and ask us about featuring your home on VictoriaComingSoonListings.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