VIREB NEWS RELEASE
FOR IMMEDIATE RELEASE
Jan 7, 2009
Ray Francis, VIREB 2009 President
2008 an adjusting year for Van Island real estate
NANAIMO, BC – Multiple Listing Service® (MLS®) annual sales summary data released by the Vancouver Island Real Estate Board (VIREB) for 2008, shows an annual drop in the number of sales with average sale prices trending down.
While the average sale price across the VIREB region for 2008 was $349,510, a six per cent increase from 2007, average prices actually fell three percent in the last month of 2008. There were 4,059 residential unit sales for 2008, down 30 per cent from the 5,834 posted in 2007. Total listings inventory was 21,776 in 2008, up from 20,423 in 2007. In the latest monthly MLS® sales summary for December 2008, there were 137 MLS® sales, down from 279 in December 2007. Listings for December 2008 were also down from December 2007.
Incoming 2009 President Ray Francis says while there has been a definite slowdown, the VIREB market remains stable overall and correctly-priced homes are selling. "Looking back in 2008 from January to August, things were on line with 2007," he says. "It is only in the
last three to four months we've noticed a sharp decline. Most of that has to do with what's happening inthe US and the global economic slowdown.”
Subhadra Ghose, VIREB’s 2008 President, says there is no question the global economic slowdown is being felt. “More buyers and sellers appear to be taking a ‘wait and see’ approach. The unseasonably wintry weather over the Christmas holidays didn’t help that,” she says. “However fewer listings in December going into the New Year shows inventories of properties are re-adjusting and starting to balance out.”
VIREB Campbell River Director Erika-Leigh Haley reminds sellers to be realistic. “While it is very nice to see a six per cent increase in the VIREB average price from 2007, sellers need to remember that the market didn’t actually turn until the later part of 2008. Sales volumes have fallen sharply and the average price in the month of December fell across the VIREB region and are trending down.”
2008 annual average sale prices across VIREB's six zones: Campbell River increased 6 per cent (to $315,252), the Comox Valley was up 8 per cent (at $354,307), Nanaimo is up 6 per cent (to $365,173), Parksville/Qualicum grew 3 per cent (to $392,344), Port Alberni increased 9 per cent (to $238,137) and the Cowichan Valley increased 9 per cent (to $383,101).
In the Comox Valley, VIREB Director Marty Douglas says the real estate market will serve both sides ofthe transaction. “We will look back on 2009 from two points of view: as sellers we’ll complement ourselves on taking advantage of the equity gains made on our prudent investment in years gone by. As buyers, we’ll brag about our entry into the market place when mortgage rates were four percent and there was so much choice.”
In Parksville/Qualicum, there is activity in the marketplace. “Sellers have to be right priced and reasonable. There are bargain shoppers out there. I believe the market correction has happened already, and it won’t correct as much on Vancouver Island as it has in other more expensive urban markets.”
In Port Alberni, VIREB Director Lyle Price says there are buyers out there: “I think there is a bit of pent up demand building. People couldn’t get out during Christmas and especially during the unseasonable 3 weeks of snow we had on the ground. Buyers will see we’re pretty close to the bottom and things will be looking better by March/April of this year.”
In the Cowichan Valley, VIREB President-Elect Cliff Moberg says people buy or sell real estate because something in their lives requires them to do so: growing family, separation, empty nesters, not because the media says it’s a good time to buy or sell. “We do still have some deals happening and we continue to get buyer inquiries. I am hopeful the first quarter will show signs of a turn around as the world economic situation settles.”
Francis sees moderate change in the real estate market in 2009. “Total number of sales will decline over 2008. Prices will also continue to decline slightly downward as the sellers vie for the fewer number of qualified buyers in our market,” he says, noting this will have a balancing effect on the over all market place. “We will continue to see a steady stream of sales throughout the year. This is because the VIREB region remains most definitely a destination for retirees, people wanting a much more moderate climate and more affordable real estate than other west coast urban markets such as Victoria and the Lower Mainland.”
“As a member of their local real estate Board, REALTORS ® have their finger on the pulse of the housing market. Consumers should contact their REALTOR ® if they are considering buying or selling a home.”