Prices are up and home sales are down on Vancouver Island, a trend driven by historically low inventories, according to the Vancouver Island Real Estate Board (VIREB).
Across the island, active listings for single-family homes and townhouses / townhouses are down 50% from last year, while condominium listings have fallen 61% over the past year. from the same period, according to a press release from VIREB.
Sales are also down. There were 891 units sold last month, down 18% from last year. Single-family homes are down 15%, with 560 having been sold in August 2021.
Homes in Campbell River are getting more and more expensive. The benchmark price for a single-family home in the city reached $ 650,000 in August 2021, a 33% increase from last year.
But at least the prices here are lower than the rest of Vancouver Island. In the VIREB region, the average price of a single-family home hit $ 740,900 last month, a 33% increase year over year.
The reason for these trends is the low supply, according to the VIREB.
“Sales would undoubtedly be higher if there was adequate inventory,” Ian Mackay, president of VIREB 2021, said in the statement. “Additionally, as the real estate industry is driven by supply and demand, we would expect prices to continue to rise unless demand drops or listings rise.”
While the VIREB is encouraged by federal parties focusing on housing affordability in the current election campaign, without a plan to build more housing, those promises will not be honored, he said.
Developers are faced with “delay levers” at the local level which hinder new construction and constitute significant obstacles to increasing the supply of housing, according to the VIREB. As such, the real estate boards plead with provincial and regional decision-makers to speed up development processes so that demand can be satisfied more quickly.
“Building more housing is not the easy solution, but it is the key to making housing more affordable,” Mackay said.
Campbell RiverReal Estate