Wednesday, September 06, 2006
Values climbing slowly, volume up slightly in August
FOR IMMEDIATE RELEASE
September 5, 2006
NANAIMO, BC - Multiple Listing Service (MLS) sales summary data released by the Vancouver Island Real Estate Board (VIREB) for August 2006, shows average selling values rising slowly and sales volumes increasing slightly from the previous month.
The average sale price across the VIREB region for August 2006 was $297,128. This is an 11 per cent increase from the $267,003 posted at the end of August 2005, but a slight decline from the figure at the end July 2006.
Unit sales volumes in August 2006 increased in most of the 6 VIREB zones from the previous month (July 2006), but were down just under 20 per cent from the end of August 2005.
VIREB President Darrell Paysen says the market is slowly adjusting as has been anticipated.
"People have to remember that 2005 was a huge record year and 2006 is shaping up to be the 2nd best year on record. That's pretty good," he says.
Average sale prices across VIREB's six zones, from August 2005 to August 2006: Campbell River increased 11 per cent (to $266,419), the Comox Valley was level at 0 per cent (at $277,704), Nanaimo is up 15 per cent (to $322,120), Parksville/Qualicum grew three per cent (to $350,646), Port Alberni increased 17 per cent (to $209,587) and Duncan's increased 13 per cent (to $305,839).
Adds Paysen: "We've been projecting that things would start to settle into a more normal market. That means we'll start to see five to 10 per cent increases per year, rather than 25 per cent."
VIREB Vice President Jennifer Lynch on Gabriola Island, says listings are up.
"The market adjustments on pricing are more reflective of the market values, and not prices falling," she says. "This is good news for buyers as it means more selection to choose from."
Nanaimo VIREB director Ken Westfall says the inventory load could help push the market.
"With a lot of low-priced inventory, this will allow first-time Buyers back into the market, as long as interest rates remain low. This would result in a bump-up situation up the inventory price ladder," he says.
Marty Douglas, VIREB director in the Comox Valley, says the market remains strong. "While our zone stats show fewer sales than last year, this year is the silver medalist in the past 6 years," he says.
In Campbell River, VIREB director Dan Samson says the retirement flow into the market continues. "Nearly 40 per cent of our sales are now going to retirees with the strata purchase becoming the first choice due to lifestyle choices," he says, noting new construction strata's sold on a 'project' basis are not always reflected in MLS statistics.
Fellow Campbell River director Karol Power says the amount of email from out of town buyers is still very strong. "In the past week showings have been up considerably," noting the first time buyer sector is growing.
Paysen points to a recent TD Bank economic report that noted conditions that are leading to a possible decline in US real estate activity are not present in Canada.
"These economists are expressing continuing confidence in the Canadian real estate industry which is very encouraging," Paysen explains, noting the key for consumers remains working with a professional REALTOR who is an expert in local market conditions.
Adds Douglas: "Sellers should price their homes realistically and buyers should make their best offer."
VIREB represents approximately 1,070 licensed REALTOR members in more than 80 member offices on Vancouver Island (north of Victoria).
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VIREB cautions that average price information can be useful in establishing trends over time, but does not indicate the actual prices in centers comprised of widely divergent neighborhoods or account for price differential between geographic areas.
REALTOR is a trademark identifying real estate professionals who are members of the Canadian Real Estate Association (CREA). REALTORS subscribe to a Code of Ethics and Standards of Business Practices as set out by CREA. MLS is a cooperative marketing system used by Canada's real estate boards.
For more information, please contact:
Darrell Paysen, President, 250-748-5000
Drew Harris, Communications, 250-390-4212
September 5, 2006
NANAIMO, BC - Multiple Listing Service (MLS) sales summary data released by the Vancouver Island Real Estate Board (VIREB) for August 2006, shows average selling values rising slowly and sales volumes increasing slightly from the previous month.
The average sale price across the VIREB region for August 2006 was $297,128. This is an 11 per cent increase from the $267,003 posted at the end of August 2005, but a slight decline from the figure at the end July 2006.
Unit sales volumes in August 2006 increased in most of the 6 VIREB zones from the previous month (July 2006), but were down just under 20 per cent from the end of August 2005.
VIREB President Darrell Paysen says the market is slowly adjusting as has been anticipated.
"People have to remember that 2005 was a huge record year and 2006 is shaping up to be the 2nd best year on record. That's pretty good," he says.
Average sale prices across VIREB's six zones, from August 2005 to August 2006: Campbell River increased 11 per cent (to $266,419), the Comox Valley was level at 0 per cent (at $277,704), Nanaimo is up 15 per cent (to $322,120), Parksville/Qualicum grew three per cent (to $350,646), Port Alberni increased 17 per cent (to $209,587) and Duncan's increased 13 per cent (to $305,839).
Adds Paysen: "We've been projecting that things would start to settle into a more normal market. That means we'll start to see five to 10 per cent increases per year, rather than 25 per cent."
VIREB Vice President Jennifer Lynch on Gabriola Island, says listings are up.
"The market adjustments on pricing are more reflective of the market values, and not prices falling," she says. "This is good news for buyers as it means more selection to choose from."
Nanaimo VIREB director Ken Westfall says the inventory load could help push the market.
"With a lot of low-priced inventory, this will allow first-time Buyers back into the market, as long as interest rates remain low. This would result in a bump-up situation up the inventory price ladder," he says.
Marty Douglas, VIREB director in the Comox Valley, says the market remains strong. "While our zone stats show fewer sales than last year, this year is the silver medalist in the past 6 years," he says.
In Campbell River, VIREB director Dan Samson says the retirement flow into the market continues. "Nearly 40 per cent of our sales are now going to retirees with the strata purchase becoming the first choice due to lifestyle choices," he says, noting new construction strata's sold on a 'project' basis are not always reflected in MLS statistics.
Fellow Campbell River director Karol Power says the amount of email from out of town buyers is still very strong. "In the past week showings have been up considerably," noting the first time buyer sector is growing.
Paysen points to a recent TD Bank economic report that noted conditions that are leading to a possible decline in US real estate activity are not present in Canada.
"These economists are expressing continuing confidence in the Canadian real estate industry which is very encouraging," Paysen explains, noting the key for consumers remains working with a professional REALTOR who is an expert in local market conditions.
Adds Douglas: "Sellers should price their homes realistically and buyers should make their best offer."
VIREB represents approximately 1,070 licensed REALTOR members in more than 80 member offices on Vancouver Island (north of Victoria).
- 30 -
VIREB cautions that average price information can be useful in establishing trends over time, but does not indicate the actual prices in centers comprised of widely divergent neighborhoods or account for price differential between geographic areas.
REALTOR is a trademark identifying real estate professionals who are members of the Canadian Real Estate Association (CREA). REALTORS subscribe to a Code of Ethics and Standards of Business Practices as set out by CREA. MLS is a cooperative marketing system used by Canada's real estate boards.
For more information, please contact:
Darrell Paysen, President, 250-748-5000
Drew Harris, Communications, 250-390-4212
