In the Loop: October 2021 Real Estate Market Stats

The predominant theme running through the housing market in the Vancouver Island Real Estate Board (VIREB) area is one of “different month, same issues.”

The October 2021 real estate market stats show that, by category, 398 single-family homes sold in October. This is a 23% decrease from one year ago. There were 122 condo apartment sales last month, which is a six percent decrease from October 2020. In the row/townhouse category, 88 units sold compared to 98 the previous October. According to experts, however, there is little doubt that a lack of active listings is causing the sales decline.

Buyers continue to face frustrating hurdles caused by historically low inventory, with little relief in sight. Active listings of single-family homes were 46% lower last month than in October 2020 and dropped by 18% from September. VIREB’s inventory of condo apartments declined by 63% from one year ago and was 26% lower than in September. However, there was some positive news for townhouse buyers. While active listings in this category dropped by 39% year-over-year, inventory increased by 13% from September – which is a positive indication for the category.

The road to a balanced market lies in increasing the supply

In its most recent housing forecast, the British Columbia Real Estate Association (BCREA) stated that the supply situation is especially severe in markets outside the Lower Mainland and on Vancouver Island. Listings activity has been lackluster as a consequence of this. Even if sales come back down to long-run average levels, total listings would need to nearly double to bring markets back into balance. The road to doubling those listings lies in increasing the housing supply.

“Unless demand drops significantly or more inventory comes online through new construction, VIREB’s inventory situation likely won’t improve,” says Ian Mackay, 2021 VIREB President.

Mackay 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, helping to build the homes people need more quickly.

“Real estate is all about supply and demand. New construction isn’t a quick solution, but it’s the only one that can address the housing shortage, and, hopefully, temper prices,” said Mackay.

The board-wide benchmark price of a single-family home reached $757,300 in October, which is a 31% increase year over year. In the apartment category, the benchmark price hit $397,200 last month, indicating a 30% increase from October 2020. The benchmark price of a townhouse increased by 34% in October, and as a result, reached $584,700.

October 2021 Benchmark Prices

Nanaimo’s benchmark price rose by 28 percent, hitting $755,500
In Campbell River, the benchmark price of a single-family home hit $663,000 in October, up by 29 percent from the previous year.
In the Comox Valley, the year-over-year benchmark price rose by 31 percent to $779,000.
The Cowichan Valley reported a benchmark price of $756,900, an increase of 30 percent from October 2020.
Parksville-Qualicum area saw its benchmark price increase by 34 percent to $887,300.
Port Alberni reached $504,000, a 36 percent year-over-year increase.
North Island rose by 55 percent, hitting $418,800 in October.