The Neal Estate Team's Real Estate Market Update for Vancouver Island for March 2020

There were 260 single-family homes sold in the VIREB (Vancouver Island Real Estate Board) area in February 2020, up 15% compared to the same month last year. Sales volume of single-family homes increased by 49% from January to February 2020. The number of condo units sold in February decreased by 19% from 2019 to 2020. Townhome units sold decreased 10% in the same time period.

Inventory rose for single-family homes and condominium properties while dropping for townhomes. There were 1,069 available single-family properties at the end of February, 8% up from the same month last year. Condos were up 37% with 358 units on the market and townhomes were down 11% to 144 listings.

Board-wide Benchmark price for single-family homes was up 3% from February last year reaching $516,500. Condos also were up, 5% from last year, getting to $310,800. Townhomes rose the least, up 2% year-over-year hitting a benchmark price of $411,200 in February 2020

Vancouver Island is a diverse area for Real Estate. While some areas are seeing a continued depressed inventory and multiple offers as a result of a slightly early spring market, other areas are far more balanced. There has been a lot of talk about the upcoming changes to “the mortgage stress test” and how it will affect buyers and pricing. The current stress test significantly reduces purchasers buying power which has compressed the middle and low end of the market as those looking to buy are forced to look in those ranges. The announced changes to the stress test which will take effect on April 6th, 2020 will theoretically reduce the qualifying rate in the 0.3% range (depending on how rates change). This change will have less effect on the lower end of the market but will start to make more of a difference to people looking at more expensive properties. Hopefully, this will decompress the market a bit as those buyers in the upper-middle-range will have more options opened up for them.

Correctly presented properties are continuing to sell. There are abundant opportunities depending on your area, property type, and price range, especially for moving-up buyers. Please contact us for a free consultation with a Neal Estate Team Area Specialist.

P.S. Ask us about our new home seller programs for INSTANT OFFER or Your Home Sold in 30 Days...Or We Sell it *FREE! Click HERE for Free Market Value Estimate!

The Neal Estate Team
Your Victoria & Vancouver Island Real Estate Experts
“Go with those who know!”
www.RonNeal.com
www.HomesOnVancouverIsland.ca