April 1, 2018
The third month of 2018 saw continued pressure on the market; pressure that was rooted in the fact that there’s still virtually nothing for sale. The result was that some high-demand properties, especially in the under $600,000 dollar price range, were selling for far more than asking price, and for a lot more money than they would have commanded even in late 2017.
Toronto ,Vancouver, and Victoria have all had considerable drops in sales volumes for the first few months of this year, but the latest statistics from the Vancouver Island Real Estate Board show that we are continuing to buck that trend. Last month was there were a total of 80 single family homes sold in the Valley, up 16 % from the 69 that sold in March of last year, and also still well above the 53 sales that took place in March of 2009. And I truly believe the sales volume would have been even higher if we had more homes on the market to sell.
There were only 132 active single family home listings on the market at the end of last month, compared to 147 at the end March 2017 and 281 at the end of March 2016. For further context, consider that there were 501 homes on the market at the end of March of 2009; and that was after the market peaked in the financial crisis of ’08.
Let me put this another way. In my 27 years selling Real Estate, this is the lowest inventory I can remember at the end of March, and it is creating considerable pressure in the market even with new tightened mortgage stress test qualification rules, higher interest rates and the foreign home buyers tax in the larger urban centers.
Prices continue to rise; on average, single family residential sale prices for the 12 months ending in March were at $468,467, up 18% from $395,705 a year ago. Another indicator of what prices have done over the last year comes from figures in the MLS Home Price Index; that’s a benchmark for Realtors of a group of home sales. That gauge shows single family homes in the Cowichan Valley going from $363,000 in February 2017 to $ 419,000 in February 2018. That’s a 15.4% gain.
What does this all of this mean to you? If you’ve been sitting on the fence, considering listing your home but worried about the market conditions, it’s time to stop worrying and take advantage of a complete seller’s market before the spring flowers bloom and the potential looming effects of higher interest rates and tighter mortgage qualifications start raising the supply of homes, and the Valley joins the trend of slowing markets that we’re seeing in other parts of the country. We have low supply, low mortgage rates, lots of buyers, and a lot of pent-up demand. Give me a call today.
BCREA 2018 First Quarter Housing Forecast Update
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.