MonthlyStatisticsF E B R U A R Y 2 0 1 7

FOR IMMEDIATE RELEASE March 1, 2017

Despite Additional Inventory, the VIREB Area is Still a Sellers’ Market NANAIMO, BC – In February 2017, 347 single-family homes sold on the Multiple Listing Service® (MLS®) System compared to 406 last February, a decrease of 15 per cent. Sales rose by 42 per cent from January 2017, which saw 245 sales. Inventory of single-family homes declined by 38 per cent from February 2016, with 949 active listings compared to 1,529 one year ago. However, the 949 available properties reflect a six per cent increase over January, an encouraging development since the lack of inventory continues to challenge consumers and REALTORS® in the VIREB area.

The British Columbia Real Estate Association (BCREA) reports that strong economic fundamentals are fuelling housing demand throughout British Columbia, with the B.C. economy continuing to outpace the rest of Canada. Among other factors, increased population growth is a significant force driving the provincial housing market.

“In the first three-quarters of 2016, net migration to British Columbia hit 50,000 people,” says Cameron Muir, BCREA Chief Economist. “Although most of those residents will end up on the Lower Mainland, the effects of this influx will inevitably trickle into other markets.”

Although BCREA expects the provincial economy to weaken somewhat this year, consumer confidence and job growth should continue to have a net positive effect on the housing market. After dipping in late 2016 and early 2017, overall sales activity in the province appears to be trending upwards again, and that is certainly happening on Vancouver Island.

In fact, sales in the VIREB area would no doubt be much higher if there were more properties available, says Janice Stromar, 2017 VIREB President.

“The Nanaimo market in February was busier than I’ve ever seen,” says Stromar. “Single-family homes in the $450,000 range are practically flying out the door, and multiple offers are the norm, not the exception.”

The VIREB area has been a sellers’ market for several months now, and Stromar encourages people to list their homes now.

“Real estate is cyclical, and consumers need to take advantage of these market conditions because they won’t last forever,” says Stromar.

She adds that connecting with a local REALTOR® is especially crucial in a competitive housing market. REALTORS® have specialized knowledge of their communities and are equipped with sales tools, such as custom analytics, to help buyers formulate winning offers and help sellers receive maximum dollars for their home.

In February 2017, the benchmark price of a single-family home in the VIREB area was $403,100, up 18 per cent from one year ago. Prices increased in every zone, ranging from 14 per cent in Duncan and Port Alberni to 25 per cent in Nanaimo. The benchmark price of an apartment in February rose 22 per cent board-wide from the previous year, but the highest increases were seen in Parksville-Qualicum (24 per cent), the Comox Valley (26 per cent), and Campbell River (26 per cent). The townhouse market also strengthened in February, posting a 20 per cent increase board-wide.

The February 2017 benchmark price of a single-family home in the Campbell River area was $318,100, an increase of 17 per cent over February 2016. In the Comox Valley, the benchmark price hit $401,000, up 17 per cent from 2016. Duncan reported a benchmark price of $345,500, an increase of 14 per cent compared to February 2016. Nanaimo’s benchmark price rose 25 per cent to $444,400 while the Parksville-Qualicum area saw its benchmark price increase by 20 per cent to $454,100. The price of a benchmark home in Port Alberni stayed the same as in January but did rise by 14 per cent from one year ago.

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ABOUT VIREB

VIREB represents over 1,000 REALTOR® members in approximately 90 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 centres comprised of widely divergent neighbourhoods or account for price differential between geographic areas. Trademarks are owned or controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA (REALTOR®) and/or the quality of services they provide (MLS®). Visit our website for updated information at www.vireb.com.

Contact: Janice Stromar, President: 250.758.7653 Don McClintock, President-Elect: 250.748.7200 Margo Hoffman, Past President: 250.248.8371 Darrell Paysen, Manager, Member Services: 250.390.4212

Or, for further localized comments, please contact: Campbell River: Erika Haley 250.286.1187 Comox Valley: Kevin Reid 250.334.3124 Cowichan Valley: Lovina Miller 250.748.0320 Nanaimo: Janice Stromar 250.758.7653 Kaye Broens 250.751.1223 Parksville-Qualicum: Margo Hoffman 250.248.8371 Port Alberni-West Coast: Sandy Rantz 250.726.2228

MLS® HPI Media Contact Communications Department Vancouver Island Real Estate Board communications@vireb.com 250.390.4212

Backgrounder

About the MLS® Home Price Index On November 1st, VIREB adopted the MLS® Home Price Index (MLS® HPI) as a new method of reporting price trends in the market. The MLS® HPI determines the value for a typical “benchmark” home, which is a notional dwelling that shares a specific set of qualitative and quantitative attributes. Benchmark prices tend to be slightly lower than corresponding medians and averages The MLS® HPI, based on the information entered into the MLS® System at the time of sale, is the best and purest way of determining price trends in the housing market. It was pioneered by six founding partners: the real estate boards of Calgary, Fraser Valley, Montreal, Toronto, and Vancouver, and the Canadian Real Estate Association. In 2009, the partners contracted with Altus Group to develop the MLS® HPI, which subsequently launched in January 2012. Others have since joined the program, with 10 partners and growing. Why an MLS® Home Price Index? The MLS® HPI captures and analyzes Canadian home prices based on both quantitative and qualitative housing features.

Quantitative features captured by the index are, for example, number of rooms and bathrooms, living area above ground and the age of the home. Qualitative features include finished basement, if the home is new or resale, and the home’s proximity to shopping, schools, transportation, hospitals and so on.

The MLS® HPI gauges Vancouver Island prices relative to January 2005, and tracks price trends for benchmark housing types:

Single-family homes

o One-storey

o Two-storey

Townhouses

Condominium apartments

The complete methodology is available at http://homepriceindex.ca/hpi_resources_en.html

Why Does It Matter? Average and median home prices are often misinterpreted, are affected by change in the mix of homes sold, and can swing dramatically from month to month (based on the types and prices of properties that sold in a given month). The MLS® HPI overcomes these shortcomings. Compared to all other Canadian home price measures, the MLS® HPI identifies turning points sooner, is the most current, and is the most detailed and accurate gauge for Canadian home prices.

How to Read the Tables

Benchmark Price: Estimated sale price of a benchmark property. Benchmarks represent a typical property in each market. Price Index: Index numbers estimate the percentage change in price on typical and constant quality properties over time. All figures are based on past sales. In January 2005, all indices are set to 100 Month/Year change %: Percentage change of index over a period of (x) month(s) year.

Single-Family Home Benchmark Price

Apartment Benchmark Price

Townhouse Benchmark Price

HPI Data

MLS® Sales Summary

Copies of archived Statistics are available at our website. Go to www.vireb.com and under Resources in the top menu, choose Market Statistics. You are encouraged to contact any of the Directors of the Vancouver Island Real Estate Board to obtain local comments.

Average, Median, and Benchmark Price (HPI) Comparisons

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VIREB Board Area MLS® SalesSingle Family - Average, Median and Home Price Index

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VIREB Board Area MLS® SalesCondo (Apt) Average, Median and Home Price Index

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VIREB Board Area MLS® SalesCondo (Twnhse) - Average, Median and Home Price Index

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Single-Family Active Listings / Listings and Sales

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VIREB Board Area - Single Family Active MLS® Listings

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VIREB Board Area - Total Single Family New MLS® Listings and Sales

Listed Sold