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Housing supply continues to be tight as prices climb on northern Vancouver Island

Prices rise significantly over 2021
Inventory of single-family homes has been on the decline on Vancouver Island. (PQB News file photo)

The Vancouver Island real estate market is still experiencing a shortage of houses for sale.

The Vancouver Island Real Estate Board latest report indicates demand continues to outpace supply. The single-family homes inventory declined 39 per cent in January, compared to the 2021 statistics in the same period. But it was higher by 15 per cent from December 2021, specifically condos (up 49 per cent) and townhouses (up 18 per cent).

The benchmark price of a single-family continues to spike over the year. In Parksville Qualicum Beach area, the benchmark price rose to $952,900 from $903,300.

The board-wide benchmark price of a single-family home reached $804,500 in January, up 36 per cent year over year. In the apartment category, the benchmark price hit $409,100 last month, a 29 per cent increase from January 2021. The benchmark price of a townhouse increased by 35 per cent, climbing to $620,400 in January.

In other areas, the benchmark price of a single-family home in Campbell River hit $682,800 in January, up 29 per cent from the previous year. In the Comox Valley, the year-over-year benchmark price rose by 32 per cent to $814,500.

The Cowichan Valley reported a benchmark price of $782,900, an increase of 29 per cent from January 2021. Nanaimo’s benchmark price rose by 36 per cent, reaching $822,600. In Port Alberni, the benchmark price hit $553,900, a 52 per cent year-over-year increase.

The benchmark price of a single-family home for the North Island rose by 52 per cent to $434,400.

By category, 220 single-family homes sold on the MLS System in January, a 22 per cent decrease from a year ago. There were 91 condo apartment sales last month compared to 87 one year ago and 75 the previous month. In the row/townhouse category, 61 units sold in January compared to 77 one year ago and 50 in December 2021.

READ MORE: B.C. home values increase by 22% for 2022, biggest changes in single-family houses

In its recent Market Intelligence Report, the British Columbia Real Estate Association states that with markets so out-of-balance, it will take a substantial decline in demand to return active listings to a healthy state

Erica Kavanaugh, 2022 VIREB president, echoes the real estate sector’s repeated calls for new measures to increase housing stock.

“Unless demand drops significantly or more inventory comes online through new construction, VIREB’s inventory situation likely won’t improve,” says Kavanaugh. “The issue of supply isn’t a new one in British Columbia, but the lack of inventory we’re experiencing has been compounded by the pandemic and decades of insufficient planning.”

— NEWS Staff, submitted

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