by Christopher Kutyn

Low Inventory puts Upward Pressure on Price
Hello Readers

The Market Minute returns this month reflecting the changes to the VIREB statistics/Matrix system which we rely on each month.

The Single Family Detached market sector now captures additional property types such as ‘Detached Waterfront’ houses, so the sample size is larger. Looking back, some of the market indicators have been skewed, but overall we continue to provide some insight into the market trends.

The story during this ongoing pandemic is low inventory putting upward pressure on price. There is strong competing interest on some properties. The demand for Hornby Island and Denman Island properties is driven by lifestyle considerations. The actions of this buyer group, often leaving the Big City behind to take up the Island lifestyle, seem to be saying “Stick a fork in me I am done”. The demand for waterfront properties is also very strong.

One other issue driving higher prices is the rapidly rising cost of construction materials.

Comox Valley, October 2020 VIREB stats

Single Family Houses Sold

770 6% YTD
850 5.5% 12MTD
$ 668,403 9% 12MTD

Campbell River, October 2020 VIREB stats

Single Family Houses Sold

455 8.6% YTD
502 9% 12MTD
$ 552,681 10% 12MTD
“People often tell me I could be a great man. I'd rather be a good man..” John F. Kennedy Jr.

Christopher Kutyn

Chris has been appraising Real Estate for over 30 years and has served on the board for the local chapter of the Appraisal Institute of Canada.

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