Market Minute
A Tale of Two Cities…
In its day, Dickens’ classic was a best seller. There may still be some lessons to learn from his genius. I will leave his European comparisons for another time, but today I would like to consider the high cost of Regulation. In 2018, the Comox Valley will celebrate ten years since the adoption of the Regional Growth Strategy. Thus far, Campbell River has avoided this additional layer of regulation.
We have highlighted the issue of low inventory levels, and have documented the strong upward pressure on price. Again, this month, the upward pressure continues. At a recent council meeting of the Town of Comox, an 18 lot subdivision was approved. A reliable source told me that this is the first subdivision to be approved in three years.
The average lot price in the Comox Valley is $214,801, compared to the level of $141,358 for Campbell River. The average house price in the Comox Valley is $443,930. In Campbell River, the average price is $365,526. These differences beg three questions……What is the cost of Regulation? Is the tail wagging the dog? For all the talk of ‘affordability’, is an average lot price of over $200,000 really necessary?
