The Neal Estate Team's Real Estate Market Update for Vancouver Island for January 2022

The Vancouver Island Real Estate area (Cowichan Valley all the way up to Cape Scott) had a total of 351 sales take place in December 2022. Of those 351 sales, 226 of them were single-family homes, 75 were condos and 50 were townhomes. Overall, everything was down which is not unusual for the last month of the year. Single-family home sales were down 26% from November and 47% compared to December 2020. Condos sales were down 32% from the previous month and 40% annually while townhomes were down only marginally year-over-year but 49% from November.

While seasonal factors are very much at play with respect to the slower sales, inventory is another reason things are slowing down. With record low inventory there simply isn’t enough housing stock to meet demand, and as of now, inventory is still shrinking. In December the number of single-family homes on the market decreased by 26% from November and 47% from the end of December 2020. Condo listings were down 30% from the previous year and 70% year-over-year while townhomes were down 13% and 53% in the same time periods.

As expected, housing prices board-wide continued to creep upward with single-family homes hitting a Benchmark Price of $785,300, condos hitting $403,800 and townhomes $609,300. In year-over-year percentages, single-family homes are up 24% in Benchmark Price, condos are up 29% and townhomes 35%.

Here is a breakdown of the regional Benchmark Prices and the annual December to December increase:

In a bit of an odd phenomenon, many areas across Canada are experiencing similar market trends (excluding the prairies). With that in mind, we find that our “looking forward” section of our Victoria Market Update is perfectly relevant for the rest of the Island as well: “Looking forward to the rest of 2022 we know in the short term that inventory is still too tight for the momentum of 2021 to be changed in any substantial way. That being said, many forecasters and economists are predicting a levelling out of price increases after the first quarter and a decrease in sales volume overall. There are many factors that could have a substantial impact, such as the new “cooling-off period”, not to mention any other government initiatives that may be forthcoming (housing prices are very much on the governments' radar on all levels), interest rate changes, or just good old fashioned running out of buyers on the demand side.”

Lastly, we would also like to specifically thank our Central Island clients for all their support which helped put us in the Top 50 Teams In Canada (RankMyAgent) and the top-rated and most reviewed Real Estate organization in Victoria on Google (just ask Siri to “call the best realtor in Victoria”).

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