Vancouver Island Real Estate Market Forecast for 2018
Vancouver Island Realtor Lorne Gait talks about the current Vancouver Island market
Lorne helps you understand where the Vancouver Island Real Estate Market will head in 2018. Hopefully, you will enjoy this forecast.
The Vancouver Island Real Estate Board or VIREB–has published the Vancouver Island Real Estate Stats for December 31, 2017.
Vancouver Island Real Estate Stats
These two reports include:
- Cumulative Residential Average Single Family Sale Price
- Single Family Units Reported Sold
- Comparative Activity by Property Type
- MLS® Single Family Sales Analysis
- Cowichan Valley – Single Family Sales by Subarea
- Nanaimo – Single Family Sales by Subarea
- Gabriola Island
Contained in these stats is information on the Average House Price for the region, the amount of homes sold and much more. In this update, we are considering two Real Estate Board areas. These are the Cowichan Valley Region which goes from Mill Bay through to Ladysmith and the Nanaimo Board area which goes from Cedar up to North Nanaimo.
In many ways, these statistics form a great way to look at the market that has past and to predict the market that will come in 2018.
A quick look at the stats shows that prices are upward as there is less supply in relation to the amount of demand. In the Nanaimo, the average home went up from $451,65 in December 2016 to $529,724 in December 2017. In the Cowichan Valley, the average home went up from $401,494 in December 2016 to $465,198 in December 2017. This upward trend took place in Apartments, patio homes and townhomes for both regions.
Looking forward, the best indication of the immediate future is what has taken place in the recent past. When we look at the statistical facts, this is still a Seller’s market. There is less supply and more demand which continues to put upward pressure on the housing industry.
Vancouver Island Real Estate Threats and Opportunities
Threats . . .
However, there are some threats to the market. The first is the global downturn in real estate. In many areas of the planet, higher taxes and costs related to owning real estate have caused real estate values to drop. So far, the exception has been niche / exclusive high end real estate. The exceptions are mostly in North America. Already there have been reversals for the worse. Examples are Australia, Toronto, and London. To this time, the market is still good in Hong Kong, New York and Vancouver. However, there are warning signs ahead.
Other threats include new mortgage rules which create mortgage stress tests for all who require mortgages; more provincial and local taxes; more and increased foreign buyer taxes for those who wish to invest in the local market.
Opportunities . . .
At the same time as there are threats, there are also opportunities. First, this is a great time to downsize from larger single family homes to townhomes and condos. It is a great time to buy a new home–especially with the BC Government new home rebate on Property Transfer Tax. Furthermore, it is a great time to relocate to one of the best places in the world to live. Vancouver Island Real Estate offers, arguably, one of the most exclusive real estate opportunities in the world and in one of the best countries in the planet.
Vancouver Island Real Estate Market Video . . .
Hopefully this Forecast has helped you to gain insight to current conditions in the Vancouver Island Real Estate market for 2018. If you have questions about the data detailed in this post or in the reports, or if you would like to discuss the stats in detail with Lorne, please get in touch.
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