MonthlyStatistics · 2019. 1. 3. · 13 per cent over December 2017. In the Comox Valley, the...
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MonthlyStatistics DECEMBER 2018
Transcript of MonthlyStatistics · 2019. 1. 3. · 13 per cent over December 2017. In the Comox Valley, the...
MonthlyStatisticsD E C E M B E R 2 0 1 8
FOR IMMEDIATE RELEASE January 2, 2019
Housing Market in 2018 Performed as Expected
NANAIMO, BC – Sales of single-family homes in December dropped by 48 per cent from one year ago and were 44 per cent lower than in November.
Last month, 170 single-family homes sold on the Multiple Listing Service® (MLS®) System compared to 304 in November and 328 one year ago. Apartment sales in December were 65 per cent lower than in December 2017, while the number of townhouses sold in December dropped by two per cent from one year ago. Annual sales of single-family homes in 2018 totalled 4,543, a 19 per cent drop from 2017. However, this reduction reflects the market returning to more normal levels after the robust housing markets witnessed in 2016 and 2017.
Inventory of single-family homes last month rose by 23 per cent from one year ago (941 to 761) but dipped by 12 per cent from November 2018. Active listings of apartments rose by 20 per cent (225 to 270) year over year and townhouses by 59 per cent (93 to 148).
The 2018 housing market behaved as expected, moderating after the record-setting pace set in 2016 and 2017. Government policy-side measures introduced to cool the market, such as the mortgage stress test (Guideline B-20), eroded the purchasing power of some prospective home buyers by as much as 20 per cent.
Despite lower demand, however, year-over-year benchmark prices of single-family homes continue to rise board-wide, up 10 per cent from December 2017. Price increases in individual markets ranged from seven per cent in Nanaimo to 20 per cent in Port Alberni. Small month-over-month price reductions from November to December were posted in Duncan, Nanaimo, and Port Alberni. The year-over-year benchmark prices of apartments and townhouses board-wide increased by 12 and 13 per cent, respectively.
Decreased demand and additional inventory are helping VIREB’s long-running sellers’ market transition to one that is balanced or near-balanced. However, “micro markets” are omnipresent in many communities, favouring sellers for moderately priced properties and benefitting buyers for higher-end homes. Overall, however, REALTORS® are reporting that they are negotiating fewer multiple offers, with many buyers taking more of a wait-and-see approach.
“Realistically pricing your home is important in any market, but when fewer buyers are competing for a property, sellers need to be far more strategic,” says Don McClintock, 2018 VIREB President.
McClintock also notes that property assessments, which were recently issued, complicate the pricing process for sellers who may not realize that the assessed figure is based on the previous year and does not reflect a home’s current value. The expertise of a REALTOR®, who will conduct a comparative market analysis using recent sales data, is hugely beneficial when determining an optimal sales price.
The benchmark price of a single-family home board-wide was $506,300 in December, a 10 per cent increase from one year ago. (Benchmark pricing tracks the value of a typical home in the reported area.) In the apartment category, the benchmark price climbed to $319,000, up 13 per cent from last year. The benchmark price of a townhouse hit $411,500 last month, up 12 per cent over December 2017 but down slightly from November.
Last month, the benchmark price of a single-family home in the Campbell River area hit $414,600, an increase of 13 per cent over December 2017. In the Comox Valley, the benchmark price reached $508,100, up 10 per cent from last December. Duncan reported a benchmark price of $466,600, up 10 per cent from December 2017 but down two per cent month over month. Nanaimo’s benchmark price rose seven per cent to $538,300 but dropped by two per cent from November. The Parksville-Qualicum area saw its benchmark price increase by 11 per cent to $580,500 while the cost of a benchmark single-family home in Port Alberni reached $299,000 in December, up 20 per cent from one year ago but down four per cent from November.
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ABOUT VIREB VIREB represents over 1,000 REALTOR® members in nearly 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: Don McClintock, President: 250.748.7200 Kaye Broens, President-Elect: 250.751.1223 Janice Stromar, Past President: 250.758.7653 Darrell Paysen, Manager, Member Services: 250.390.4212
Or, for further localized comments, please contact: Campbell River: Chris Quinn 250.286.1187 Comox Valley: Kevin Reid 250.334.3124 Cowichan Valley: Blair Herbert 250.746.6621 Nanaimo: Janice Stromar 250.758.7653 Kaye Broens 250.751.1223 Parksville-Qualicum: Erica Kavanaugh 250.248.8371 Port Alberni-West Coast: Sandy Rantz 250.591.4601
MLS® HPI Media Contact Communications Department Vancouver Island Real Estate Board [email protected] 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
Single-Family Benchmark Price Difference – One Month
Single-Family Benchmark Price Difference – 12 Months
Apartment Benchmark Price
Apartment Benchmark Price Difference – One Month
Apartment Benchmark Price Difference – 12 Months
Townhouse Benchmark Price
Townhouse Benchmark Price Difference – One Month
Townhouse Benchmark Price Difference – 12 Months
HPI Data – Single-Family
HPI Data – Apartment
HPI Data – Townhouse
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
$300,000
$350,000$400,000$450,000
$500,000$550,000
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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® ListingsActive
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VIREB Board Area - Total Single Family New MLS® Listings and Sales
Listed Sold
