2021 ends with near-record sales and record-low inventory

The December 2021 Nanaimo Real Estate market stats show that the Vancouver Island Real Estate Board (VIREB) recorded 11,045 unit sales (all property types) in 2021, close to the 12,014 and 11,341 unit sales seen in 2016 and 2017. It is a remarkable outcome notwithstanding since it occurred amidst an environment of historically low inventory. Based on buyer demand, 2021 would have likely set a historic sales record with sufficient supply.

By category, active listings of single-family homes were 47% lower last month than in December 2020 and down by 26% from November. VIREB’s inventory of condo apartments declined by 71% from one year ago and was 30% lower than in November. Row/townhouse inventory dropped by 53% year-over-year and was 13% lower than the previous month.

As for sales, 226 single-family homes sold on the MLS® System in December, a 25% decrease from one year ago and down 36% from November. There were 75 condo apartment sales last month compared to 124 one year ago and 110 the previous month. In the row/townhouse category, 50 units sold in December compared to 53 one year ago and 98 in November 2021.

Inventory continues to be the key to affordability.

According to the British Columbia Real Estate Association, the supply situation is especially critical in markets outside the Lower Mainland, with one of the worst being Vancouver Island. Even if sales were to return to long-run average levels, total listings would need to nearly double to achieve a balanced market, and the road to doubling those listings lies in building more homes.

2021 VIREB president Ian Mackay repeated previous calls for new measures to increase housing stock.

“Expanding inventory is the key to affordability, and it requires a coordinated effort from all levels of government and adequate incentives for municipalities to take action,” says Mackay. “The public also has a role to play by being more open to gentle densification in some areas.”

Mackay added that 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 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.

Regarding housing costs, the board-wide benchmark price of a single-family home reached $785,300 in December, up 34% year-over-year. In the apartment category, the benchmark price hit $403,800 last month, a 29% increase from December 2020. The benchmark price of a townhouse increased by 35%, climbing to $609,300 in December.

December 2021 Benchmark Prices

Nanaimo’s benchmark price rose by 32% from December 2020
Campbell River, the benchmark price of a single-family home hit $689,000 in December, up by 32% from the previous year.
Comox Valley, the year-over-year benchmark price rose by 31% to $800,400
Cowichan Valley reported a benchmark price of $776,800, an increase of 30% from December 2020
Parksville-Qualicum area saw its benchmark price increase by 37 per cent to $927,100
The cost of a benchmark single-family home in Port Alberni reached $523,700, which is a 43% year-over-year increase
North Island rose by 46 per cent to $424,600