November 1, 2021
As we get ready to fall back the clocks, the darker days have been creeping in but there is a continued bright light in the Cowichan Valley housing market for sellers.
As a result of so few homes being offered for sale, single-family home sales in the Cowichan Valley were down to 75 from the 80 home sales in September, and down from the 85 in October last year. When looking at the last 12 months, the number of homes sold was up with 903 sales in comparison to the 776 in the previous 12 months.
The average sale price for single-family homes in the valley last month was $787,942; that’s an incredible 31.87% year-over-year increase. Another tool, the benchmark price from the Vancouver Island Real Estate Board’s Home Price Index shows that from October 2020 to October 2021, single-family sale prices in the Cowichan Valley were up 30.3% to $756,900.
Homes in the $600,000 to $700,000 price range in the Cowichan Valley accounted for 19.39% of all sales so far this year with homes in the $500,000 to $600,000 price range scoring second with 18.8% of all sales. Incredibly, homes over $1,000,000 accounted for 7.4% of all sales.
The inventory of homes in the Cowichan Valley continues to stay path with the province-wide trend and remains at a record low level with 64 active single-family home listings on the market yesterday, compared to 107 at the same time last year. Simply put, low supply equals strong upward price pressure on the market.
The current inventory represents less than a month's supply of homes on the market. Statistically, a 4-5-month supply is considered to be a fairly balanced market. There are substantial variations in the number of listings available for sale and selling by area, property type, and price range but overall almost all sectors are quite undersupplied.
This month we also saw the time to sell properties decrease. Last October the average was 43 days to sell a single-family home and this year that number is down to 21.
The percentage of list price that sellers are achieving has been going up and we are still seeing multiple offers very frequently. Sellers last month averaged 104.91% of list price compared to 100.3% in the same month last year. I'm happy to report this year to date I have averaged 110.8% of the list price for single-family home my sellers. I pride myself on getting every dollar I can for my sellers.
Condominium apartment sales were way down in October with 13 sales in comparison to the 28 that sold last October but up from the 11 sales in September 2021. This was a direct result of the low inventory of condos to sell. At the end of this October, there were only 8 condos on the market compared to 37 last October.
Condominium apartments in the valley saw the average price for October up to $306,439; that's up 8.12% in comparison to last October. The Home Price Index benchmark price also shows prices were way up 40.9% over last October.
Wrapping things up here, there are very few homes to sell in the valley with a large pool of buyers, so bidding wars and price increases continue to be the story in the Cowichan Valley.
Hope you have a great week.
Record-Low Supply Keeps Market Conditions Tight in September
Vancouver, BC – October 12, 2021. The British Columbia Real Estate Association (BCREA) reports that a total of 9,164 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in
September 2021, a decrease of 19.9 per cent from September 2020. The average MLS® residential price in BC was $913,471, a 14 per cent increase from $801,241 recorded in September 2020. Total sales dollar volume was $8.4 billion, an 8.6 per cent decline from last year.
“Home sales have settled at levels that are slightly above long-term average,” said BCREA Chief Economist Brendon Ogmundson. “The main story in all markets continues to be a severe lack of listings supply, particularly in Fraser Valley, Vancouver Island and Interior markets.”
Total active residential listings were down 36.8 per cent year-over-year in September for the province as a whole and were more than more than 50 per cent below last September’s levels in the Fraser Valley and Victoria.
Year-to-date, BC residential sales dollar volume was up 81.8 per cent to $90.4 billion, compared to the same period in 2020. Residential unit sales were up 52.4 per cent to 99,182 units, while the average MLS® residential price was up 19.3 per cent to $911,195.
BCREA 2021 Fourth Quarter Housing Forcast
Vancouver, BC – October 28, 2021. The British Columbia Real Estate Association (BCREA) released its 2021 Fourth Quarter Housing Forecast today.
Multiple Listing Service® (MLS®) residential sales in the province are forecast to rise 29 per cent to 121,450 units this year, after recording 94,013 sales in 2020. In 2022, MLS® residential sales are forecast to pull back 15 per cent to 102,750 units.
“After a frenzied start to the year, activity in BC housing markets has settled back to a level that is broadly in-line with long-run trends. The strength of the first half of this year has sales on track to easily break the previous record for annual sales,” said BCREA Chief Economist, Brendon Ogmundson. “While we do not anticipate a repeat of the record-setting market of 2021, we do expect housing market activity to remain vigorous in 2022,” added Ogmundson.
Given strong demand and very low active listings, particularly in smaller markets around BC, the average home price in BC is projected to rise 17 per cent in 2021. Prices are forecast to rise about 3 per cent in 2022 as the composition of home sales changes due to normalizing demand for single-family homes and a recovery in active listings helps the market balance out.
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.
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