MonthlyStatisticsM A R C H 2 0 1 7

FOR IMMEDIATE RELEASE

April 3, 2017

Low Inventory Continues to Limit Vancouver Island Buyers

NANAIMO, BC – The Vancouver Island Real Estate Board (VIREB) reports that in March 2017, 484 single-family

homes sold on the Multiple Listing Service® (MLS®) System compared to 518 last March, a decrease of seven per

cent. Month over month, sales rose by 40 per cent from February 2017, which saw 346 sales.

Inventory of single-family homes declined by 36 per cent from March 2016, with 1,023 active listings available last

month compared to 1,598 one year ago. Low inventory continues to frustrate consumers and REALTORS® in the

VIREB area. An additional 145 single-family properties came onto the market in March, but the increase was not

significant enough to have a noticeable impact on inventory. Sales would no doubt be much higher if there were

more properties available, says Janice Stromar, 2017 VIREB President.

“Properly priced single-family homes between $500,000 and $600,000 rarely last longer than a day or two and

generate multiple offers, with many selling above list price,” says Stromar.

Certainly, the VIREB area has been a sellers’ market for several months now. Although some homeowners continue

to be reluctant to put their home on the market fearing they will not find another house to buy, Stromar urges

people to sell now.

“Real estate is cyclical, and consumers need to take advantage of these market conditions because they won’t last

forever,” says Stromar. “When the market does correct itself – and it always does – it usually happens without

warning.”

She adds that connecting with a local REALTOR® is especially crucial in a competitive housing market.

“This kind of market can be confusing and chaotic for buyers and sellers, but REALTORS® have specialized

knowledge of their communities that can help clarify the situation,” says Stromar. “We’re also equipped with sales

tools, such as custom analytics, to help buyers formulate winning offers and ensure sellers receive maximum

dollars for their home.”

The British Columbia Real Estate Association (BCREA) reports that strong economic fundamentals are fuelling

housing demand throughout British Columbia, with the B.C. economy continuing to outpace the rest of Canada.

Increased interprovincial migration and strong job growth are significant forces driving the provincial housing

market.

In March 2017, the benchmark price of a single-family home in the VIREB area was $410,400, up 17 per cent from

one year ago. Prices increased in every zone, ranging from 12 per cent in Port Alberni to 23 per cent in Nanaimo.

The benchmark price of an apartment in March rose 26 per cent board-wide from the previous year, but the

highest increases were seen in the Comox Valley and Campbell River, at 31 per cent. The townhouse market also

strengthened in March, posting a 19 per cent increase board-wide.

The March 2017 benchmark price of a single-family home in the Campbell River area was $323,100, an increase of

15 per cent over March 2016. In the Comox Valley, the benchmark price hit $408,300, up 15 per cent from 2016.

Duncan reported a benchmark price of $353,000, an increase of 14 per cent compared to March 2016. Nanaimo’s

benchmark price rose 23 per cent to $452,900 while the Parksville-Qualicum area saw its benchmark price increase

by 18 per cent to $463,500. The price of a benchmark home in Port Alberni hit $217,800, up 12 per cent from one

year ago.

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ABOUT VIREB

VIREB represents over 1,000 REALTOR® members in nearly 90 member offices on Vancouver Island (north of Victoria). VIREB cautions that average price information can be useful in establishing trends over time, but does not indicate the actual prices in centres comprised of widely divergent neighbourhoods or account for price differential between geographic areas. Trademarks are owned or controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA (REALTOR®) and/or the quality of services they provide (MLS®). Visit our website for updated information at www.vireb.com.

Contact: Janice Stromar, President: 250.758.7653 Don McClintock, President-Elect: 250.748.7200 Margo Hoffman, Past President: 250.248.8371 Darrell Paysen, Manager, Member Services: 250.390.4212

Or, for further localized comments, please contact: Campbell River: Erika Haley 250.286.1187 Comox Valley: Kevin Reid 250.334.3124 Cowichan Valley: Lovina Miller 250.748.0320 Nanaimo: Janice Stromar 250.758.7653 Kaye Broens 250.751.1223 Parksville-Qualicum: Margo Hoffman 250.248.8371 Port Alberni-West Coast: Sandy Rantz 250.726.2228

MLS® HPI Media Contact Communications Department Vancouver Island Real Estate Board communications@vireb.com 250.390.4212

Backgrounder

About the MLS® Home Price Index On November 1st, VIREB adopted the MLS® Home Price Index (MLS® HPI) as a new method of reporting price trends in the market. The MLS® HPI determines the value for a typical “benchmark” home, which is a notional dwelling that shares a specific set of qualitative and quantitative attributes. Benchmark prices tend to be slightly lower than corresponding medians and averages The MLS® HPI, based on the information entered into the MLS® System at the time of sale, is the best and purest way of determining price trends in the housing market. It was pioneered by six founding partners: the real estate boards of Calgary, Fraser Valley, Montreal, Toronto, and Vancouver, and the Canadian Real Estate Association. In 2009, the partners contracted with Altus Group to develop the MLS® HPI, which subsequently launched in January 2012. Others have since joined the program, with 10 partners and growing. Why an MLS® Home Price Index? The MLS® HPI captures and analyzes Canadian home prices based on both quantitative and qualitative housing features.

Quantitative features captured by the index are, for example, number of rooms and bathrooms, living area above ground and the age of the home. Qualitative features include finished basement, if the home is new or resale, and the home’s proximity to shopping, schools, transportation, hospitals and so on.

The MLS® HPI gauges Vancouver Island prices relative to January 2005, and tracks price trends for benchmark housing types:

Single-family homes

o One-storey

o Two-storey

Townhouses

Condominium apartments

The complete methodology is available at http://homepriceindex.ca/hpi_resources_en.html

Why Does It Matter? Average and median home prices are often misinterpreted, are affected by change in the mix of homes sold, and can swing dramatically from month to month (based on the types and prices of properties that sold in a given month). The MLS® HPI overcomes these shortcomings. Compared to all other Canadian home price measures, the MLS® HPI identifies turning points sooner, is the most current, and is the most detailed and accurate gauge for Canadian home prices.

How to Read the Tables

Benchmark Price: Estimated sale price of a benchmark property. Benchmarks represent a typical property in each market. Price Index: Index numbers estimate the percentage change in price on typical and constant quality properties over time. All figures are based on past sales. In January 2005, all indices are set to 100 Month/Year change %: Percentage change of index over a period of (x) month(s) year.

Single-Family Home Benchmark Price

Apartment Benchmark Price

Townhouse Benchmark Price

HPI Data

MLS® Sales Summary

Copies of archived Statistics are available at our website. Go to www.vireb.com and under Resources in the top menu, choose Market Statistics. You are encouraged to contact any of the Directors of the Vancouver Island Real Estate Board to obtain local comments.

Average, Median, and Benchmark Price (HPI) Comparisons

$250,000$300,000$350,000$400,000$450,000$500,000

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VIREB Board Area MLS® SalesSingle Family - Average, Median and Home Price Index

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VIREB Board Area MLS® SalesCondo (Apt) Average, Median and Home Price Index

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VIREB Board Area MLS® SalesCondo (Twnhse) - Average, Median and Home Price Index

Average Sale Price Median HPI

Single-Family Active Listings / Listings and Sales

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VIREB Board Area - Single Family Active MLS® ListingsActive

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VIREB Board Area - Total Single Family New MLS® Listings and Sales

Listed Sold