It’s been a great couple of years for sellers (and still is) and a tough time for buyers. We have been experiencing a prolonged period of record low inventory (lack of homes for sale) and thus reduced residential sales. This September showed a 32% reduction in home sales from September 2017 and we have seen a 13% reduction over the past 12 months versus the year prior. This decline in sales has been recorded across Vancouver Island. Only 47 residential properties have sold this year compared to 54 last year (which was low enough!). The sell price to list price ratio stands at 97% and the sell to list ratio for this month is 100%. There is currently only 1.6 months of inventory on the market.
What are the reasons for the reduced sales? There are many reasons I am sure. Buyers are definitely having a harder time. First time home buyers are are up against higher interest rates as well as higher mortgage qualifications. Those who already own a home may not be able to “move up” to a larger house because they may face higher monthly payments than they had anticipated due to the rise in rates. In addition, people planning on moving to Campbell River will want to ensure they will be satisfied with the sale proceeds of the property they already own before they commit to the move.
On a positive note, the median home price is $465,000, up from $428,000 in August. This is still well below the Comox Valley which is at $520,000, keeping Campbell River at a competitive advantage. Campbell River will continue to grow as people looking to move to Vancouver Island push northward seeking more affordable markets. Data from Trenlii shows the average sale price for homes in Campbell River to be $394,200 and the average listing is on the market for 42 days before it sells.
Let’s get these property sales up! As you can see, it’s a great time to sell. With so little on the market most homes get snapped up quick! For everything you need to know about getting your home on the market, give me a call at 250-203-8652 or email firstname.lastname@example.org. If you are looking to buy, let’s chat. There are ways I can help make the process easier.