by Scott Lissa
on Saturday, November 14th, 2020 at 4:49pm.
The results are in for October 2020, and the real estate market on Central Vancouver Island continues to defy gravity. The stock of houses, condos and land is bought at a record pace, with multiple buyers competing for ownership. This competitive market has many buyers stressing out while sellers receive the asking price or more for their homes.
Many factors are driving this trend that has been difficult to predict for most market analysts. Many people predicted that prices would be falling for homes across Canada due to COVID. However, COVID has generated more home buyers looking to move to Vancouver Island and leave the mainland behind.
Nanaimo Average Single Detached Home Price, October 2020
Average homes sale price compared to the previous four years of sales data.
Average Price by Property Type:
Avg Sale Price
Average Price of Other Cities:
Avg Sale Price
COIVD has been causing an influx of people relocating to Vancouver Island in droves. One reason is that so many professions from Vancouver can work from home and want to pursue a better life in a smaller community on the West Coast of Canada. One can understand this choice as Central Vancouver Island has no traffic, endless forests, and vast stretches of coastlines to explore. If you're looking for a better work-life balance, start by living the island life.
Another factor is that snowbirds that travel South for the winter can not cross the border due to travel restrictions. Other issues, such as traveller's insurance coverage and civil unrest in the USA, cause further impediments are making retirees look for alternative solutions. It seems that the Snowbirds have found an alternative with Vancouver Island and flocked here in mass. Most campsite and RV parks are booked solid with people loving the temperate climate and low COVID infection rates.
Finally, many renters have found COVID makes renting less appealing, which has caused them to enter the real estate market. Some say this is due to the proximity of living near other residents. Others are seeing the cost of rent being comparable with investing in a mortgage. Purchasing is still challenging for first-time homebuyers due to the low housing inventory, the Mortgage Stress Test, and the need for large down payments. Despite these challenges, Central Vancouver Island has some of the lowest real estate prices on the West Coast of Canada, which is a significant benefit to first-time homebuyers.
Though October has shown some of the most robust sales numbers in the last five years, we will see a natural slowdown due to the holiday season's approach. Many Notaries and Lawyers leave for holidays in mid-December, making it impossible to complete a sale of real estate and file tile at the Land Title Offices. Furthermore, very few people want to move during bad weather. Time will tell what the market brings in the final two months of 2020, but sales continue to look strong in mid-November.
It's important to note that most news regarding real estate trends only takes into consideration large markets. These trends have little to do with housing markets like Vancouver Island. When planning to buy or sell a home, seeking local experts will give you the knowledge to make an informed decision.
If you're considering selling your home, the stock is low, and demand is high for a house in Nanaimo, Duncan and Parksville. Ranchers and New Construction houses are the most in-demand. Patio homes and single-story townhomes are also in high demand in well-managed strata. Questions often arise when considering listing your house or condo for sale. Please feel free to contact us to learn more about the Vancouver Island Real Estate Market and start living the Island Life.