In the Loop: November 2021 Real Estate Market Stats

How low can housing inventory go?

The November 2021 Real Estate Market Stats show that active listings in the Vancouver Island Real Estate Board (VIREB) area continue to drop. The demand is far outpacing supply, and inventory has hit consecutive historical lows for several months running.

The active listings of single-family homes were 44% lower last month than in November 2020 and dropped by 24 percent from the previous month. VIREB’s inventory of condo apartments declined by 69% from one year ago and was 23% lower than in October. Lastly, the row/townhouse inventory dropped by 55% year over year and was 47 percent lower than the previous month.

By category, 353 single-family homes sold on the MLS® System in November, which is a 16% decrease from one year ago. There were 110 condo apartment sales last month compared to 107 one year ago and 122 the previous month. Lastly, in the row/townhouse category, 98 units sold compared to 90 in the previous November and 88 in October 2021.

Vancouver Island face one of the worst inventories in BC

According to the British Columbia Real Estate Association, the supply situation is especially critical in markets outside the Lower Mainland. One of the worst inventory situations is on Vancouver Island. However, even if sales were to return to long-run average levels, the total listings would need to nearly double to achieve a balanced market. As mentioned in previous months, the road to doubling those listings continues to lie in building more homes.

VIREB welcomes the news that the Government of British Columbia is giving local governments more tools and powers to simplify and speed up their development approvals processes. The changes announced by the government include removing requirements for local governments to hold public hearings for development proposals that already align with Official Community Plans and equipping municipal staff to make decisions for minor development variance permits.

“Increasing housing supply isn’t a simple solution. It requires a coordinated effort from all levels of government and adequate incentives for municipalities to take action,’” says Ian Mackay, 2021 VIREB President.

“Homes need to be built in a reasonable time frame at a reasonable cost, and it cannot continue to take years to get a development off the ground. The public also has a role to play in being open to gentle densification in some areas.”

Naturally, the tight housing market is affecting prices in the VIREB area. The board-wide benchmark price of a single-family home reached $769,700 in November, which is a 33% increase year over year. In the apartment category, the benchmark price hit $401,100 last month, which is a 29% increase from November 2020. The benchmark price of a townhouse increased by 35 percent, reaching $594,400 in November. As a result of these numbers, we can deduce that the seller’s market continues in the VIREB area.

November 2021 Benchmark Prices

Nanaimo’s benchmark price rose by 29 percent, as a result hitting $768,700
Campbell River, the benchmark price of a single-family home hit $683,500 in November, which is a 30% increase from the previous year.
Comox Valley, the year-over-year benchmark price rose by 32% to $785,300.
Cowichan Valley reported a benchmark price of $770,000, which is an increase of 33% from November 2020.
Parksville-Qualicum area saw its benchmark price increase by 35 percent to $903,300.
Port Alberni reached $509,100, which is a 40% year-over-year increase.
North Island rose by 51 percent, asa ahitting $417,700 in November.