05-May 16 VIREB Stats Package - Vancouver Island Real Estate

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
May-16
Mar-16
Feb-16
Jan-16
Dec-15
Nov-15
Oct-15
Sep-15
Aug-15
Jul-15
Jun-15
May-15
Apr-15
Mar-15
Jan-15
Feb-15
Dec-14
Oct-14
Nov-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Copyri ght© 2016 VIREB
Sold
Mar-16
Feb-16
Jan-16
Dec-15
Nov-15
Oct-15
Sep-15
Aug-15
Jul-15
Jun-15
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
May-16
1000
800
600
400
200
0
May-16
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
Nov-15
Oct-15
Sep-15
Aug-15
Listed
Jul-15
Jun-15
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