The benchmark price for a single-family home in the Parksville Qualicum Beach area has surpassed the $1M mark.
Statistics released this week by the Vancouver Island Real Estate Board (VIREB) showed prices have continued to rise.
The board-wide benchmark price of a single-family home reached $881,800 in April, up 34 per cent year over year. In the apartment category, the benchmark price hit $462,100 last month, a 34 per cent increase from April 2021. The benchmark price of a townhouse increased by 29 per cent, climbing to $657,300 in April.
The PQB price for a single-family home increased by 38 per cent to $1,027,000. In Campbell River, the price hit $769,800 in April, up by 31 per cent from the previous year. In the Comox Valley, the year-over-year benchmark price rose by 27 per cent to $878,400. The Cowichan Valley reported a benchmark price of $871,900, an increase of 36 per cent from April 2021. Nanaimo’s benchmark price rose by 33 per cent, reaching $907,600, while Port Alberni reached $615,200, a 46 per cent year-over-year increase. For the North Island, the benchmark price rose by 39 per cent to $437,400.
VIREB reports inventory in the area is climbing, but the housing supply is still far below the level needed to satisfy current demand.
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Active listings of single-family homes rose by 34 per cent from April 2021 and by 32 per cent from March of this year. VIREB’s inventory of condo apartments was 13 per cent lower than in April 2021 but increased by 18 per cent from March. Row/townhouse inventory rose by 39 per cent year over year and 52 per cent from March.
A “perfect storm” of factors – including record-low supply, historically low mortgage rates, and lifestyle changes resulting from the COVID-19 pandemic – has fuelled dramatic price increases and highly competitive real estate transactions. However, industry workers have noticed that current demand is not equally distributed throughout VIREB’s zones, resulting in “micro-markets.” These pockets of heightened activity favour particular price points and property types within an area.
According to VIREB, demographics also play a significant role in British Columbia’s robust housing market. A large contingent of 30-39-year-olds are entering their homebuying years. Intergenerational wealth transfer is helping many get onto or climb the property ladder, placing additional pressure on inventory and prices.
VIREB reported it is too early to say if conditions are beginning to shift towards a more balanced market. According to the British Columbia Real Estate Association, housing markets in British Columbia are so lopsided that it will take a substantial decline in demand to return active listings to a healthy state.
— NEWS Staff, submitted