The local Comox Valley property market entered a new phase of the next cycle over the past 6 months. Good listings are down (in some sectors by as much as 40%), sales are up and prices are continuing to rise. This activity has been dramatic when compared to the past 8 years.
Our local market last peaked in 2007 when prices reached new highs. This was followed by the crash in sales of 2008 when they dropped about 32%. The subsequent 6 years favoured buyers in most instances and the overall market was a buyers’ market. Lows were reached in 2014 and the market started to show signs of becoming more neutral by the end of the year. This trend continued in 2015 and by the fall of that year some sectors were starting to favour sellers. Over the most recent 6 months this trend strengthened and the average single family home price in the Comox Valley shot up from just under $345,000 in Dec 2015 to just over $403,000 in April 2016. As of August the average sell price was $446,900. Average prices in a small market are not always the best metric so the following chart presents both average and median home prices in Comox as an example. What is clear is the upward trend shown by the arrow for 2016.
Some of the change in this market is due to people leaving the crazy markets on the mainland but much of it is locally driven. Supply and demand are major factors with supply down and demand up. Not every part of the market has reacted the same way but most parts of the local market now favour sellers – a stark contrast to the past 8 years when buyers had the upper hand in most instances. This is no longer the case and it is important that buyers realize this.
Multiple offers and homes selling higher than list has become a reality in some Comox Valley home transactions. As well, many sellers will not consider offers subject to the sale of someone else’s home. While this type of offer was considered in the past along with time clauses that ranged from 24 to 72 hours the practice is currently very uncommon. Yes, buyers the market has changed and forecasts over the past 2 years forecasting the change along with higher prices are now being realized in this part of Vancouver Island.
Anyone thinking of selling or buying a home here should contact a realtor who knows the market well and what it is doing and where it is headed. Want a realtor with expert knowledge and someone who will go Above and Beyond to meet your real estate needs? Contact Brett through his website at www.brettcairns.com and get started realizing your home sales and purchase goals.