We are officially in Fall and with that came an expectation that the Real Estate market would slowly be returning to a more traditional curve. All signs pointed to a slight climb in inventory, possibly moving us into a balanced market in the next 4-5 months BUT… this Fall, along with the last 19 months have proved us wrong on so many levels.
Interest rates are still rock bottom and the Bank of Canada says we can expect the same until at least the 3rd quarter in 2022. Prices are climbing, albeit at a slower pace, but they are going up and if the property is unique and desirable (ie: a rancher, waterfront, ocean views, desirable area etc) the demand outstrips the supply 20-1.
The increase in COVID numbers and the virility of the Delta variant are making buyers and sellers reassess what is important and we are seeing clients move up retirement plans and consider homes with living for extended families. Finding a rental is like looking for toilet paper when the pandemic started and we are seeing prices remain strong. Rentals are cheap by Vancouver standards, but locally $2500-$3000/m for a home is higher than we have ever seen.
Here are some numbers for those that like stats.
ACTIVE LISTING INVENTORY – This is for all Vancouver Island, for all types of properties
August 2019 – 6,980 properties for saleAugust 2020 – 5,890 properties for saleAugust 2021 – 3,085 properties for sale – WOW! less than 1/2 the inventory from 2 years ago
- The take away – Ridiculously low inventory which is obvious to any active buyers.
WATERFRONT LISTINGS & SALES
- The take away – Waterfront inventory is decreasing, sales are strong and prices will continue to climb. Waterfront is like a commodity with a limited production and there is no predictable ceiling.
The silver lining is if you are selling. Expect to net more, in a shorter time. If you are selling to purchase another home, I strongly recommend locking in your next purchase before you list and sell your current home.
One more statistic… If you are buying in Nanaimo, looking for a stand alone single family home and have a budget of $750,000 – there are currently 22 homes for you to choose from. I just went through the entire list and based on my personal knowledge of the market and individual homes, 6 have offers, 1 is not built and 2 are estate sales waiting for probate which leaves 16 available and only 13 that you could reasonably move into in the next 45 days.
These are strange times and we hope we can help you navigate these unknown waters and continue to help you make smart decisions that move you towards your real estate goals.
