Vancouver Island housing market rebounds in August

0926 – The Vancouver Island housing market rebounded from the Coronavirus downturn more quickly than expected, says Kevin Reid, president of the Vancouver Island Real Estate Board. Reid said pent-up demand, low interest rates, and persistent supply shortages are fueling the recovery.

Nanaimo home prices were up while the number of sales has declined. Figures provided by John Cooper show the average price in August for single family homes was $586,642, up five per cent over the past year on 127 sales. Single family unit sales remained stable but the average time on market rose to 36 days. 

The average condo sold for $357,518 though sales are down 11 per cent on an average 43 days on the market. 

The number of lot sales is up by 29 per cent while prices have decreased by 8 per cent to and average of $319,052. FULL REPORT HERE. 

Island-wide, outside of Victoria, VIREB recorded 1,101 total unit sales last month, a 39-per-cent increase from August 2019. 

A total of 547 single-family detached properties (excluding acreage and waterfront) sold in August, a year-over-year increase of 35 per cent. Sales of condo apartments rose by 43 per cent year over year while row/townhouse sales increased by 19 per cent. 

Reid acknowledges there is still uncertainty around the Canadian economy and U.S. election, but he is optimistic, a sentiment echoed by the British Columbia Real Estate Association (BCREA). 

“The outlook for the B.C. housing market is much brighter following a surprisingly strong recovery,” said Brendon Ogmundson, BCREA Chief Economist. “We expect home sales will sustain this momentum into 2021, aided by record-low mortgage rates and a recovering economy.” 

BCREA expects unit sales on Vancouver Island to hit 8,300 in 2021, a 15-per-cent increase over the 7,200 sales projected this year.