July’s Simmering Vancouver Island Housing Market
July’s Simmering Housing Market
A simmering effect is developing across Vancouver Island’s housing market.
Annual data shows a growth rate of 19% in home sales since July 2015.
Yet, on a month-to-month basis, Vancouver Island’s housing market has slowly tapered off. July 2016 saw a 15% decrease in home sales compared to the previous month of June 2016.
According to British Columbia Real Estate Association Chief Economist, Cameron Muir, “The housing market is usually slower in the summer months, but we believe that sales might be beginning to normalize.” Muir adds, “If so, that would allow inventory to build up and ease pricing pressure a bit.”
In the Parksville-Qualicum area, there has been a 22% increase in single-family units sold, with 941 properties sold in July 2016 compared to 770 properties sold in July 2015 . As well, over the past year the benchmark price for a single-family home in Parksville-Qualicum has increased by 17.04% from $379,100 to $443,800.
Simultaneously, housing inventory has also remained low for single-family homes, apartments, and townhouses compared to last year. Lower inventory levels have propelled benchmark prices upwards.
Key economic indicators contributing to British Columbia’s hot housing market include high employment and GDP growth, significant retail sales, and strong consumer confidence.
Vancouver Island’s simmering July home sales are certainly feeling the province’s housing market heat.