September 1, 2018
What a great summer it has been. Let’s hope September continues with the fantastic sunshine and clear skies we’ve been having. We sure are fortunate to be living in this stunning Valley!
As our summer was heating up there were definitely signs that our sales started to slow down. There were 93 single family home sales in the Valley last month. That’s compared to 106 sales recorded in August of last year and substantially lower than the record breaking 111 sales in August 2016.
The average year-to-date selling price for single family homes was up by 15% compared to the same month last year, to just over $455-thousand dollars. The benchmark sale price in the Cowichan Valley – a more accurate look at what single family home prices are doing – was up 9.5% from July 2017 to July 2018.
Over the past 12 months, we’ve seen 915 total sales, compared with 911 in the 12-month period before that. The number of active listings on the market at the end of August last year was 205. Yesterday, that number was holding almost the same at 212, but still substantially lower than the 410 in August 2015. But our inventory of single family homes here in the Valley hasn’t increased substantially like Victoria and other large urban centers across the country.
Houses are still selling in a relatively short period of time (32 days), especially those priced under the $600,000 mark in most areas in the Valley. And sellers have still been receiving an average of 99% of their list price over the last 12 months on the MLS listing service. Year to date, I am happy to report I have averaged just short of 103% of list price for my single family home listings. This just shows how much I just love negotiating and getting every penny I can for my sellers.
Even with the huge price increases we’ve seen over the last few years, it’s my opinion that single family home prices in the Cowichan Valley still reflect amazing value compared to Victoria, Vancouver, and the rest of the world - especially when you consider that the prices here also give purchasers access to one of the most incredible places in the entire country.
In my opinion the Cowichan Valley still hasn't been “discovered”. (That day may come in the not too distant future, and we may regret it when it comes.) I just hope both my daughters can get into the market long before that happens.
I had a client ask me: “Where do the buyers that purchase in the Cowichan Valley come from?” So I thought I’d share some information with you. As you can see 58.4% come from off the Island, so as the markets slow down across the country due to rising interest rates, the new mortgage qualification stress test, substantial foreign buyer taxes, and proposed taxes on second homes in larger markets across the province, there is no question our market will slow down as well. We’ve already started to see that.
But the list of where purchasers in the Cowichan Valley come from* is interesting:
Greater Victoria: 11.3%
Elsewhere on Vancouver Island (other than Victoria or same town or city): 26.1%
Fraser Valley: 6.1%
Gulf Islands 1.9%
Within the same area (Cowichan Valley) 4.2%
Other B.C.: 12.7%
Other Canada 2.8%
Rest of the world 3.3%
Note: because we are in a small area it is hard for the above to be completely accurate; I honestly have a hard time believing only 4.2% of buyers come from “within the same area.”
In any event, I thought you’d find the numbers interesting.
Here’s wishing you all the best as you get back into your routine now that summer is coming to an end.
Here is a link to this month’s Graph Stats for the Cowichan Valley, courtesy of the Vancouver Island Real Estate Board: Cowichan Valley Graph Stats.
I hope you find this current market information informative. If you have any questions about the market please feel free to contact me anytime.
Thinking of selling? Please feel free to contact me for advice on preparing your home for the market. What money should you spend if any? When is the best time to list? I am happy to consult with you anytime even if you are not planning on selling for some time.
I would love to hear from you. Email me at email@example.com or Like me on Facebook at http://www.facebook.com/kennealduncan.