Brians Blog

NANAIMO, BC – Multiple Listing Service® (MLS®) annual sales summary data released by the Vancouver Island Real Estate Board (VIREB) for 2008, shows an annual drop in the number of sales with average sale prices trending down.

While the average sale price across the VIREB region for 2008 was $349,510, a six per cent increase from 2007, average prices actually fell three percent in the last month of 2008.

There were 4,059 residential unit sales for 2008, down 30 per cent from the 5,834 posted in 2007. Total listings inventory was 21,776 in 2008, up from 20,423 in 2007.

In the latest monthly MLS® sales summary for December 2008, there were 137 MLS® sales, down from 279 in December 2007. Listings for December 2008 were also down from December 2007.

Incoming 2009 President Ray Francis says while there has been a definite slowdown, the VIREB market remains stable overall and correctly-priced homes are selling.

"Looking back in 2008 from January to August, things were on line with 2007," he says. "It is only in the last three to four months we've noticed a sharp decline. Most of that has to do with what's happening in the US and the global economic slowdown.”

Subhadra Ghose, a Nanaimo REALTOR® and VIREB’s 2008 President, says there is no question the global economic slowdown is being felt.

“More buyers and sellers appear to be taking a ‘wait and see’ approach. The unseasonably wintry weather over the Christmas holidays didn’t help that,” she says. “However fewer listings in December going into the New Year shows inventories of properties are re-adjusting and starting to balance out.”

VIREB Campbell River Director Erika-Leigh Haley reminds sellers to be realistic. “While it is very nice to see a six per cent increase in the VIREB average price from 2007, sellers need to remember that the market didn’t actually turn until the later part of 2008. Sales volumes have fallen sharply and the average price in the month of December fell across the VIREB region and are trending down.”

2008 annual average sale prices across VIREB's six zones: Campbell River increased 6 per cent (to $315,252), the Comox Valley was up 8 per cent (at $354,307), Nanaimo is up 6 per cent (to $365,173), Parksville/Qualicum grew 3 per cent (to $392,344), Port Alberni increased 9 per cent (to $238,137) and the Cowichan Valley increased 9 per cent (to $383,101).

In the Comox Valley, VIREB Director Marty Douglas says the real estate market will serve both sides of the transaction.

“We will look back on 2009 from two points of view: as sellers we’ll complement ourselves on taking advantage of the equity gains made on our prudent investment in years gone by. As buyers, we’ll brag about our entry into the market place when mortgage rates were four percent and there was so much choice.”

VIREB Director Jim Hoffman, in Parksville/Qualicum, says there is activity in the marketplace. “Sellers have to be right priced and reasonable. There are bargain shoppers out there. I believe the market correction has happened already, and it won’t correct as much on Vancouver Island as it has in other more expensive urban markets.”

In Port Alberni, VIREB Director Lyle Price says there are buyers out there: “I think there is a bit of pent up demand building. People couldn’t get out during Christmas and especially during the unseasonable 3 weeks of snow we had on the ground. Buyers will see we’re pretty close to the bottom and things will be looking better by March/April of this year.”

In the Cowichan Valley, VIREB President-Elect Cliff Moberg says people buy or sell real estate because something in their lives requires them to do so: growing family, separation, empty nesters, not because the media says it’s a good time to buy or sell.

“We do still have some deals happening and we continue to get buyer inquiries. I am hopeful the first quarter will show signs of a turn around as the world economic situation settles.” Francis sees moderate change in the real estate market in 2009.

“Total number of sales will decline over 2008. Prices will also continue to decline slightly downward as the sellers vie for the fewer number of qualified buyers in our market,” he says, noting this will have a balancing effect on the over all market place.

“We will continue to see a steady stream of sales throughout the year. This is because the VIREB region remains most definitely a destination for retirees, people wanting a much more moderate climate and more affordable real estate than other west coast urban markets such as Victoria and the Lower Mainland.”

“As a member of their local real estate Board, REALTORS ® have their finger on the pulse of the housing market. Consumers should contact their REALTOR ® if they are considering buying or selling a home.”

VIREB represents approximately 1,139 licensed REALTOR® members in more than 85 member offices on Vancouver Island (north of Victoria).

VIREB cautions that average price information can be useful in establishing trends over time, but does not indicate the actual prices in centers comprised of widely divergent neighborhoods or account for price differential between geographic areas.
 

 

 

 

 

 

 

 

 

 
VIREB reports July 2008                                            Aug 1, 2008

VIREB reports July sales statistics NANAIMO, BC – Multiple Listing Service® (MLS®) sales summary data released by the Vancouver Island Real Estate Board (VIREB) for July 2008, reports declines in unit sales volume with increases in the inventories of properties listed for sale.

There were 444 sales of single family properties in the VIREB area through the MLS® in July 2008, up from the month before but down nearly 28 per cent from the 616 sales in July 2007.

“If properties are priced correctly, they are selling. Unit sales in July 2008 were actually up in four of VIREB’s six zones from the previous month,” says VIREB President Subhadra Ghose.

“I think that shows that consumers are listening to their REALTOR® and adjusting their pricing to reflect the current marketplace.”

Inventory continues to increase, as single family properties listed for sale in July 2008 were up over 40% from the end of July 2007.

On a 12-month year to date basis, average sale price across the VIREB region for July 2008 was $354,120. This is a six per cent increase from the $333,024 posted at the end of July 2007. “While the 12-month average sale prices continue to rise slowly, we saw monthly average prices come down from the previous month in all zones except Port Alberni,” Ghose says.

“This further shows that consumers are being educated by their REALTORS® that properties that are priced right are continuing to sell.”

For the 12-month period from the end of July 2007 to July 2008, average sale prices rose in five out of six of VIREB's zones: Campbell River declined three per cent (to $315,261), the Comox Valley was up 10 per cent (at $363,679), Nanaimo is up four per cent (to $364,182), Parksville/Qualicum grew four per cent (to $382,108), Port Alberni increased 17 per cent (to $256,214) and the Cowichan Valley increased 15 per cent (to $406,375).

Ghose says recent government changes reducing mortgage amortizations back to 35 years, and eliminating 100% financing, is a good incentive for buyers to act now before the changes take place.

“We’re seeing lots of buyers out there. They need to act now to get those deals in motion, because the changes take effect October 15th,” she says.
 

 
VIREB reports May 2008                                            June 1, 2008

 

 
VIREB reports April 2008                                            May 2, 2008

 

 

NANAIMO, BC – Multiple Listing Service® (MLS®) sales summary data released by the Vancouver Island Real Estate Board (VIREB) for April 2008, shows average sale price increases and a smaller drop in unit sales volume.

The average sale price across the VIREB region for April 2008 was $359,152. This is a 12 per cent increase from the $320,934 posted at the end of April 2007. President Subhadra Ghose says it is an active spring market. “It is a healthy, balanced market with solid inventories of properties for sale.”

Unit sales volume jumped significantly from the end of March 2008, but dropped approximately 12% for the 12-month period from April 2007 to April 2008.

For the period from the end of April 2007 to April 2008, average sale prices across VIREB's six zones increased: Campbell River increased 9 per cent (to $320,148), the Comox Valley was up 8 per cent (at $351,631), Nanaimo is up 15 per cent (to $373,134), Parksville/Qualicum grew 12 per cent (to $430,542), Port Alberni increased 26 per cent (to $256,081) and the Cowichan Valley increased 14 per cent (to $382,792).

Ghose says with the active spring market conditions well underway, she remains cautiously optimistic about continuing increases through the rest of the year. “I think we’ll be seeing single digit increases throughout the rest of 2008,” she says, noting the Central Vancouver Island region remains substantially more affordable than Victoria and Vancouver.

“Consumer confidence in BC remains high. Low interest rates are helping, especially first time buyers. 40-year amortization mortgages and 100% investment property financing are also providing options to the marketplace,” Ghose says.

“Proper pricing continues to be key in this marketplace. That is why using a REALTOR® is so important, because they have their finger on the pulse of the housing market. Consumers should contact their REALTOR ® if they are considering buying or selling a home.”
 

 
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