Vancouver Island Real Estate Board Monthly Statistics Package May 2016
FOR IMMEDIATE RELEASE June 1, 2016 Hot Housing Market Puts Home Sellers in Driver’s Seat NANAIMO, BC – Home sellers are in the driver’s seat throughout the VIREB area as buyers compete for available listings. In May 2016, 771 single-family homes sold on the MLS® System compared to 527 last May, an increase of 46 per cent. Month over month, sales were up by 17 per cent from the 660 sales processed in April 2016. Last month’s active listings totalled 1,684, down 32 per cent from the 2,507 reported in May 2015. Cameron Muir, BCREA Chief Economist, states that retail sales growth in the double digits reflects high levels of consumer confidence, which is spilling over into real estate. Tourism on Vancouver Island also posted a huge spike recently, which aids local economic conditions. However, although housing demand is extraordinarily high, its foundation is solidly based on a healthy GDP and rising population growth. “British Columbia’s GDP is at three per cent, and employment growth rose around 3.5 per cent in the first four months of 2016,” says Muir. “Real estate is benefiting from that growth, with sales in the entire southern half of the province at record or near-record levels.” Janice Stromar, VIREB 2016 President-Elect, confirms that the VIREB housing market is recording record sales in many areas. Multiple offers, particularly on single-family homes, are the norm rather than the exception. Low inventory levels are still a major challenge for REALTORS® and buyers for a variety of reasons. “This is a fantastic time to sell, but some homeowners have been holding back because they love their home or are worried they won’t find another property to buy,” says Stromar. “More houses are now coming onto the market, but buyers snap them up so quickly, we still don’t have enough inventory to satisfy the demand.” Despite increases in both the benchmark and average prices over the past year, the Vancouver Island housing market is still an affordable alternative to Victoria and Lower Mainland communities. “Although retirees frequently choose to migrate to Vancouver Island, we are seeing younger professionals trading in their homes on the Lower Mainland for a significantly nicer property here,” says Stromar. “I wouldn’t call it a trend, but it’s becoming more common if people can find jobs on the Island or telecommute to jobs in Vancouver all or part of the time.” Stromar adds that in a competitive housing market, connecting with a local REALTOR® is crucial to ensure you develop a winning strategy for buying or selling your home. In May 2016, the benchmark price of a single-family home in the VIREB area was $364,500, up 9.36 per cent from one year ago. Benchmark pricing tracks the value of a typical home in the reported area. The benchmark price of townhouses and apartments also increased in nearly every market. The average MLS® price of a single-family home in May was $411,458, a 13 per cent increase from May 2015. The May 2016 benchmark price of a single-family home in the Campbell River area was $287,500, a 3.27 per cent increase over 2015. In the Comox Valley, the benchmark price was $360,400, up 11.32 per cent from 2015. Duncan reported a benchmark price of $317,300, an increase of 6.71 per cent over the same month in 2015. Nanaimo’s benchmark price rose 10.82 per cent to $389,800 while the Parksville-Qualicum area saw its benchmark price rise by 14.31 per cent to $417,900. The price for a benchmark home in Port Alberni was $197,300, unchanged from one year ago. - 30 –
VIREB represents approximately 975 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: Margo Hoffman, President: 250.248.8371 Janice Stromar, President-Elect: 250.758.7653 Jason Finlayson, Past President: 250.746.8123 Darrell Paysen, Manager, Member Services: 250.390.4212 Or, for further localized comments, please contact: Campbell River: Cholene Begin 250.286.3293 Comox Valley: Neil Woodrow 250.334.3124 Cowichan Valley: Jason Finlayson 250.746.8123 Nanaimo: Janice Stromar 250.758.7653 Kaye Broens 250.751.1223 Parksville-Qualicum: Margo Hoffman 250.248.8371 Port Alberni-West Coast: Sandy Rantz 250.746.2228 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
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 VIREB Board Area MLS® Sales Single Family - Average, Median and Home Price Index Average Sale Price
Median
HPI
Apr-16
Copyri ght© 2016 VIREB
VIREB Board Area MLS® Sales Condo (Apt) Average, Median and Home Price Index Average Sale Price
Median
HPI
May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16
$250,000 $200,000 $150,000 $100,000 $50,000 $0
Copyright© 2016 VIREB
VIREB Board Area MLS® Sales Condo (Twnhse) - Average, Median and Home Price Index Average Sale Price
Median
HPI
May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16
$300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0
Copyri ght© 2016 VIREB
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Dec-14
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$500,000 $400,000 $300,000 $200,000 $100,000 $0
Copyri ght© 2016 VIREB
Sold
Mar-16
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Dec-15
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Dec-14
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1000 800 600 400 200 0
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VIREB Board Area - Total Single Family New MLS® Listings and Sales Apr-16
Copyri ght© 2016 VIREB
Apr-16
Mar-16
Feb-16
Jan-16
Dec-15
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Sep-15
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Listed
Jul-15
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May-15
Apr-15
Mar-15
Feb-15
Jan-15
Dec-14
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
Single-Family - Active Listings / Listings and Sales VIREB Board Area - Single Family Active MLS® Listings
3000 2500 2000 1500 1000 500 0
Active
