Real Estate in Qualicum Beach, Parksville, and Nanoose Bay
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Nanoose Bay • Parksville • Qualicum Beach Local News

Local Real Estate News

Softening Hard Market

2023  -  Market Highlights Courtesy NANCY SMITH and VIREB:
Market Stats

February 2023, looking back to Novemberrrrrrrrrrr /2022 and the USA mid-term election has completed, and coincidently the stock market popped higher. However, the news for the past three years has been nothing but negative while real estate prices and inflation has been biting at our savings accounts. While the pandemic was evolving, people hesitated to list homes, view homes or even considered moving, unless necessary. Recently homes have been listing at a fantastic rate nearly bringing us closer to a 'balanced market'. Under the surface of home listings, are many sellers trying to jump on the speculation bandwagon and dump investment homes at inflated prices. We are seeing however, the volume of listings drop again as buyers are now cautious, expecting a huge drop in valuations.

Though this is true in certain areas and certain markets, here on Vancouver Island, desireable homes are still selling as fast as they appear. Yes, people are refraining from entering a multiple-offer scenario, and buyers are able to request building inspections, shop for financing, and ask for reductions when homes are not measuring up to expectations. Roofs, windows, foundations, plumbing, electrical, wells and septic systems and insect penetration is again strong consideration when negotiating. This is good news.

Increasing interest rates, when based off 2 1/2%, have sharply changed the financing landscape. Established buyers have seen market interest rates around 7.5%, so even a 4% mortgage seems affordable over the long term.

We believe the Vancouver Island market will stay strong and will not succumb to any significant price drops as it is still a popular destination for Canadians. Those people with resources will always be able to shop and buy what they need and usually what they want. There was a housing shortage on Vancouver Island long before the pandemic, and forecasts suggest with the current and future labour shortage, supply shortage and transportation costs, there will be a 30-year new housing shortcoming.


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A typical BC home.

MARKET UPDATE January /2023

Courtesy NANCY SMITH and VIREB

As mentioned in the VIREB report, statistics show a marked change in the market, but boots on the ground with Realtors indicate a busy market. Good homes (re: good value) are still being snapped up, some have experienced multiple offers. Homes above $1 million are selling. One notable policy change affecting the real estate industry is the Home Buyer Rescission Period (HBRP), which took effect on January 3, 2023. The HBRP gives home buyers up to three business days to rescind an offer on a home after the seller has accepted it. Click on "Read more" for an accounting from VIREB.

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MARKET UPDATE DECEMBER /2022

Courtesy NANCY SMITH and VIREB

JANUARY 2023 IS HERE! We have survived the past three years of pandemic craziness. The sky did not fall, major earthquakes did not happen, construction of single family homes, condos and apartments have flourished, creating labour and material shortages in the industry. We have had a few seasons of terrible BC forest fires, flooding that wiped out our highways and coastal drought conditions that have dropped our water levels. We survived. PROPERTY ASSESSMENTS have been published and our personal home value increased by 19.97% in 2022. The Average Single Family Detached Sale Price increased from $855,000 to $975,000 while our property assessment went from $856,000 to $1,027,000, resulting in a one year increase of $167,000. Somehow this does not make us feel rich. Truth be told, we bought our home at the beginning of 2014 for a paltry $402,000. Somehow, this does not make us feel rich. SO, WELCOME TO 2023, a year of transition, we hope? This time year it is difficult to grasp a market direction, as we have enjoyed a fall climb in real estate inventory, which again dropped during December. No one really needs the upheaval of selling a home during the festive season. Buyer inquiries were also down, probably for the same reason, but we still have many many buyers sitting on the sidelines waiting for home-prices to drop or even stabilize. A fascinating problem has developed to stifle the mortgage buyer, because interest rates jumped, and climbed fast. In fact, for a few people who have variable rate mortgages, or are due for term renewals, monthly payments could become a problem. WE RECENTLY went on a weekend excursion to Victoria, and to Vancouver. It has been a long time for my husband, who has not traveled to Vancouver since the start of the pandemic, the growth of homes and high-rises is unbelievable. Nanaimo, Parksville, Courtenay/Comox and Campbell River have experienced a growth explosion. All these unusual events do seem to indicate we should be turning a corner soon, construction should slow, prices should adjust lower and demand decrease. Just released from the Federal Government, Canada also hosted the largest one year immigration volume at 431,645 new permanent residents. The 2025 immigration target is 500,000 newcomers annually! Cumulatively, over five years including 2021 - 2025, we will absorb 2,274,000 new citizens. Remembering many of these new Canadians will arrive with enough wealth, to be able to buy homes somewhere in Canada. IT IS QUITE APPARENT, Vancouver Island is the mecca of Canada, and therefore is a major destination for those who can afford to live here. Toronto and Vancouver are already bursting at the seams for pricing and lack of affordability, but both cities are much higher priced than most homes on Vancouver Island. Yes, we may see a temporary pricing adjustment, and bankruptcies will increase slightly. But one must remember, very few buyers since 2019 needed mortgages. We do not anticipate much of a pricing adjustment under these conditions up to 2025. A LITTLE TWIST on the topic is the ban on Foreign buyers in BC: The new 1 million(plus) immigration of permanent residents, are excluded from the Foreign Buyer's restriction. FOR THE LATEST VIREB sales statistics, click on "Read more".

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MARKET UPDATE NOVEMBER /2022

Courtesy NANCY SMITH and VIREB

Vancouver Island ended November with our first seasonal snowfall, snarling traffic and making that morning cup of hot coffee more enjoyable. For the latest VIREB sales statistics, click on "Read more".

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MARKET UPDATE OCTOBER /2022

Courtesy NANCY SMITH and VIREB

If there was a fear index in real estate, one could assume it is increasing, as people have seen interest rates climb and stock market values decline. One wonders about the Russia-Ukraine situation, but closer to home we are still dealing with the aftermath of floods and forest fires. Vancouver Island is still Canada's jewel, and people are migrating at a pace which keeps prices high and desirable homes rare. We have seen many re-list properties coming with price reductions to a more reasonable level, and not so much in the greed-hopeful price ranges. A diligent Realtor can weed through the market clutter and place a range of value in this market. There are a few sellers who have panicked when their homes have not sold within weeks, but those sellers who have a bit of patience are discovering sales are still happening easily within the 'normal' market 90-day window. There are many buyers waiting on the sidelines, 'hoping' for a market crash, and prices to substantially fall, as is happening in less desirable markets. Those people who waited while the market values increased over 100% in the past three years, might still be waiting for those 2019 prices. For the latest VIREB sales statistics, click on "Read more".

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MARKET UPDATE SEPTEMBER /2022

Courtesy NANCY SMITH and VIREB

The market has switched from subject-free offers to buyers having time to contemplate multiple properties, have important inspections done and re-assess market values. Of course mortgage qualification and interest rates have put a damper again on what is considered marginal buyers, who not only need a healthy deposit, but now will see much higher monthly payments. An important note for Sellers: during the hot market only six months ago, some Sellers rejected subject-free offers, and currently have homes listed below that mark. We strive to stay current in today's market, and we will provide relevant data to help you contemplate any offers. For the latest VIREB sales statistics, click on "Read more".

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MARKET UPDATE AUGUST /2022

Courtesy NANCY SMITH and VIREB

CLICK on "Read more" below for the latest AUGUST /2022 local market update. We are enjoying the September long weekend at home, but the phone is busy with real estate shoppers. Since the middle of June, the real estate market changed. Listed homes stopped flying off the shelves and homes were popping up on MLS at the rate of twenty listings per day. The Buyer profiles have changed somewhat also. With a fresh choice of multiple desirable properties, Buyer's with specific needs and desires are now ready to buy and list their own home, citing the fact they will not get stranded homeless. August has brought more shopping activity, which should translate to a strong fall market. Those Buyers and Sellers who have done their homework over this Pandemic Period are ready for action. VIREB has published market data and a perspective. For AUGUST /2022 Market Statistics, click on 'Read more'.

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MARKET UPDATE JULY / 2022

Courtesy NANCY SMITH and VIREB

CLICK on "Read more" below for the latest July /2022 local market update. Since the middle of June, the real estate market changed. Listed homes stopped flying off the shelves and new homes were popping up with twenty listings per day. The Buyer profiles have changed somewhat also. With a fresh choice of multiple desirable properties, Buyer's with specific needs and desires are now ready to buy and list their own home, citing the fact they will not get stranded homeless. August is bringing a lot more shopping activity online, which should translate to a strong fall market. Sadly, hindsight shopping never works, but those Buyers and Sellers who have done their homework over this Pandemic Period are ready for action. For more opinion and July /2022 Market Statistics, click on 'Read more'.

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MARKET UPDATE JUNE /2022

Courtesy NANCY SMITH and VIREB

CLICK on "Read more" below for the latest JUNE /2022 local market update. Fortunately for Buyers, there has been a listing uptick with homes under the $1 Million range. However, as normal, many of these homes carry decorating style and floorplan layouts relative to the year they were built. Some homes have had necessary updates, and homes that have location, view, or property desirability, and recent upgrades are still hanging above the $1 Million mark. For more opinion and June /2022 Market Statistics, click on 'Read more'.

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USA Housing Statistics Are Similar to Canada

Current Sentiment is Pointing to a Stronger Housing Market.

We try to keep our local Market News and Market Statistics up to date monthly. This morning I saw USA stats as presented by Bloomberg and was surprised how similar their stats measure against Canada. It is difficult to project the long term trend by past news, but the current Corona Virus concern will affect our supply market for many products, as they have been a consistent provider. With the China shutdown, no one really knows the long term impact on our lives. Local Realtors are anticipating a strong 2020 home sales market. That said, we reproduce Bloomberg's USA housing statistics for your reading pleasure:

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Insurance is Stressing Strata Owners.

Most Insurance Issues Apply to Poorly Maintained and Poorly Operated Properties.

Strata Insurance has hit the news headlines and of course the media tends to spotlight and sensationalize their articles.

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