Market Minute

The Cavalry Is On Its Way!

July 3rd, 2018


For some time we have highlighted the over heated demand and the restricted supply, which have created the most aggressive real estate market conditions which many of us have ever experienced. Recently, in the rural area south of Courtenay, signs for ‘Union Bay Estates’ have appeared. On the supply side at least, help is on the way as some 2900+ residential units are proposed. This comprehensive phased development of 346 hectares will also include commercial, recreational and institutional (school and fire hall sites) components.

The statistics this month for the Comox Valley suggest that the market may be changing. The sell/list ratio has fallen and the days to sell has increased. Campbell River still offers better affordability as compared to the Comox Valley. The average single family house price is 16.5% ($85,922) cheaper in Campbell River. The prospect of many new homes being started by this time next year in Union Bay is great news for the Comox Valley.


One Percent Per Month

June 1st, 2018


In the Comox Valley, the 12 month to date stats point to an increase of 17% over the same period last year. This is very close to the 16% increase in the Campbell River market. In Comox, this increase is based on 893 sales, while in Campbell River there were 598 sales. It is interesting that the statistical data is often borne out as we track repeat sales which confirm a percentage increase of 1% to 1.5% per month. This information applies to the single family market. Naturally there are variations within the market sectors, but it should be noted that in some cases, the percentage increases are even higher.

Earlier this week I completed an appraisal on a new house which featured LP SmartSide Engineered Wood Siding and Trim. Initially, I thought it was Hardi Plank siding. This new product appears to have some advantages over the cement siding. I would be grateful to receive any comments from persons who are familiar with the SmartSide products. – Chris@kutyn.com


Aggressive Market Persists

May 1st, 2018


As we pointed out last month, prices continue to rise, and the dollar volume of sales increase, but the actual number of units sold is down. These trends from Campbell River and the Comox Valley are evident in some larger centres as well. Government tinkering through more and more legislation may help, but our preference is to free up the regulatory process and get more land onto the market.

One impact of increased regulation is that investors are avoiding the highly regulated areas, and instead starting to come directly to the Comox Valley and Campbell River. Partly as a result, we find that the market is still quite aggressive, with strong demand (competing interest) on the limited offerings.

 

 

A quiet word….about pornography.

Porn has ruined more lives, relationships and marriages than many of us care to think about or acknowledge. I have come to learn that pornography is not a ‘victimless crime’. There is, in fact, a direct link between porn and sex trafficking; modern day slavery.

At the end of this month, my wife Diana and I will attend an anti-porn conference in Ottawa called Strong & Free. The event is being organised by Josh Gilman and his Ministry called Strength to Fight. Three years ago, Josh walked away from a job in Parliament with a good salary, paid holidays and benefits to tackle the scourge of pornography.

When I go to Ottawa, I want to take some west coast money to show this man than he is not alone and that we support him. To date, I have collected $230. If you would like to contribute, and help me raise $1,000 or more, please call me to make arrangements. Tax receipts are available. Chris cel: 250-650-3320.

 

 


Every Last Dollar

April 4th, 2018


For both Campbell River and the Comox Valley, the number of single family houses sold In March were down but the average prices are up; Campbell River by 12 % and Comox by 11%.

We feel the decrease in the sale volume is due to low inventory levels. These low inventory levels, have resulted in aggressive competitive interest. The Vancouver Sun today reports on a similar trend in the Metro Vancouver market.

In this market, anyone can sell a property. However, you may want an expert on your side to market your home to get the best possible price. If you plan on buying something to replace it, you will need every last dollar.

 

 


Stress Test Stressing You Out?

March 1st, 2018


Due to a strong provincial economy the housing market on the North Island is still thriving. The average price of a home in the Comox Valley in February 2018 was $496,738 up 18% over this time last year. While in Campbell River the average price was $409,540 up 16%.

Currently, we are still in a “Seller’s Market” with sales to listing ratios at 69% for the Comox Valley and 81% for Campbell River. Market demand is strong and multiple offers are frequent! However, due to the affordability issues for consumers, how long can this continue?

Recently, a new mortgage stress test has been implemented, which reduces the purchasing power of consumers. In addition, interest rates are now rising, further diminishing the affordability of a home.

There is hope for prospective buyers as plans such as the Kensington Development (discussed last month) and recent initiatives implemented in the BC Governments budget would bring the demand and supply sides of the market into a more equilibrium state.


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