April 2024 Real Estate Statistics across Canada

Every month I look at these statistics with the intention of educating myself so I can help my clients to make better decisions. Unfortunately, these stats can only show me what already happened, based on solid data. There’s no crystal ball that can predict the near future. Please have a read and draw your own conclusions on what you think will happen in the next little while. I have summarized the main points from each region that I view as relevant. Full reports are also available under each city. Enjoy!   

Victoria

“The spring market in Victoria kicked off with a gentle increase in sales when compared to last year and continued stable pricing,” said 2024 Victoria Real Estate Board Chair Laurie Lidstone. “These factors, combined with growth in the available inventory, has created a welcoming and more balanced market for buyers and sellers.”

There were 3,017 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of April 2024, an increase of 14 per cent compared to the previous month of March and a 47.7 per cent increase from the 2,043 active listings for sale at the end of April 2023.

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in April 2023 was $1,295,800. The benchmark value for the same home in April 2024 decreased by 0.9 per cent to $1,284,600, up from March’s value of $1,279,300. The MLS® HPI benchmark value for a condominium in the Victoria Core area in April 2023 was $564,000 while the benchmark value for the same condominium in April 2024 increased by 0.7 per cent to $567,800, up from the March value of $567,300.

FULL REPORT HERE

Vancouver

Inventory reaches highest level since the pandemic summer of 2020
Actively listed homes for sale on the MLS® in Metro Vancouver1 continued climbing in April, up 42 per cent year-over-year, breaching the 12,000 mark, a number not seen in the region since the summer of 2020.

There were 7,092 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in April 2024. This represents a 64.7 per cent increase compared to the 4,307 properties listed in April 2023. This was 25.8 per cent above the 10-year seasonal average (5,637).

“Another surprising story in the April data is the fact prices continue climbing across most segments with recent increases typically in the range of one to two per cent month-over month,” Lis said.

The benchmark price for a detached home is $2,040,000. This represents a 6.3 per cent increase from April 2023 and a 1.6 per cent increase compared to March 2024.
The benchmark price of an apartment home is $776,500. This represents a 3.2 per cent increase from April 2023 and a 0.1 per cent decrease compared to March 2024.
The benchmark price of a townhouses is $1,127,200. This represents a 4.3 per cent increase from April 2023 and a 1.3 per cent increase compared to March 2024.
FULL REPORT HERE

Calgary

Price growth persists in Calgary as seller's market prevails
“While supply levels are still declining, much of the decline has been driven by lower-priced homes," said Ann-Marie Lurie, Chief Economist at CREB®. “Homes priced below $500,000 have reported a 29 per cent decline. Meanwhile, we are seeing supply growth in homes priced above $700,000. Persistently high-interest rates are driving demand toward more affordable products in the market and, at the same time, driving listing growth for higher-priced properties.”

With a sales-to-new-listings ratio of 83 per cent and a months of supply of less than one month, conditions continue to favour the seller, driving further price gains in the market. In April, the unadjusted total residential benchmark price reached $603,700, a one per cent gain over last month and nearly 10 per cent higher than last year's levels. Price gains occurred across all property types and districts of the city. The strongest price growth occurred in the more affordable districts of the city. 

Detached homes:
Adjustments in sales and inventory levels caused the months of supply to fall further this month. The less than one-month supply reflects a market favouring the seller, driving further price growth.
In April, the unadjusted benchmark price reached $749,000, over one per cent higher than last month and 13 per cent higher than April 2023 levels. Year-over-year gains were the highest in the city's most affordable districts.

Semi-Detached:
The persistently tight market conditions have caused further price gains. In April, the unadjusted benchmark price reached $668,400, nearly two per cent higher than last month and 13 per cent higher than levels reported last year. Year-over-year price gains ranged from a high of 23 per cent in the East district to a low of 10 per cent in the City Centre. 

Row:
The persistently tight conditions, especially in the lower price ranges, are driving further price growth for row homes. In April, the unadjusted benchmark price reached $458,100, two per cent higher than last month and 20 per cent higher than levels reported last year. Both monthly and year-over-year gains were the highest in the most affordable districts of the North East and East, where resale row homes are still priced below $400,000. 

Apartments:
Like other property types, year-over-year supply declines are driven by the lower-priced segments of the market, which for apartment condominiums is units priced below $300,000. Overall, persistent sellers’ market conditions in the lower price ranges are driving further price growth. In April, the unadjusted benchmark price reached $346,200 a month, a gain of over two per cent and nearly 18 per cent higher than last April. Year-over-year price growth ranged from over 30 per cent in the North East and East districts to a low of 13 per cent in the City Centre.

FULL REPORT HERE

Toronto

April 2024 home sales were down in comparison to April 2023, when there was a temporary resurgence in market activity. New listings were up strongly year-over-year, which meant there was increased choice for home buyers and little movement in the average selling price compared to last year.
“Listings were up markedly in April in comparison to last year and last month. Many homeowners are anticipating an increase in demand for ownership housing as we move through the spring. While sales are expected to pick up, many would-be home buyers are likely waiting for the Bank of Canada to actually begin cutting its policy rate before purchasing a home,” said TRREB President Jennifer Pearce.

The average price of a detached home in the area code (416) is $1,822,244. Semi-detached: $1,365,061. Townhouse $1,010,632. Condo:$766,917.

FULL REPORT HERE

Nanaimo

“Sales are up from March, and REALTORS® are showing a lot of homes,” says Yochim. “Listings have also had a healthy boost, which is positive news, and sellers are responding to changing market conditions with price adjustments.” Yochim adds that Vancouver Island has experienced chronically low inventory for several years, so additional listings benefit buyers and sellers. “More inventory means more choices for buyers, but sellers also need somewhere to go when their home is purchased,” says Yochim. “Additional listings are a win-win for everyone.”

In Campbell River, the benchmark price of a single-family home was $678,800 last month, up seven per cent from the previous year. The Comox Valley’s year-over-year benchmark price rose by nine per cent to $857,300. In the Cowichan Valley, the benchmark price was $772,300, a four per cent increase from April 2023. Nanaimo’s year-over-year benchmark price rose by five per cent to reach $799,300, while the Parksville-Qualicum area saw its benchmark price increase by three per cent to $885,000. The cost of a benchmark single-family home in Port Alberni was $531,400, up four per cent from the previous year. For the North Island, the benchmark price of a single-family home dropped by two per cent to $413,300.

FULL REPORT HERE

Quadra Island Real Estate:

April was a busy month Quadra Island, with 5 new listings, 2 pending, 1 sold.

Current Listings on Quadra Island here

Cortes Island Real Estate:

in April Cortes saw 3 new listings, 1 pending, 1 expired. 

Current Listings on Cortes Island here

 In conclusion, I see that more inventory is already providing more options for buyers. It’s good for buyers and sellers alike because a lot of sellers will have to purchase a new property once they sell. Most people talk about housing as if it’s a commodity and to some extend it is, however it’s really a place where people live. When people can’t afford to live in their own house they will choose to sell and downgrade. Based on what i’m seeing in my day to day transactions a lot of people are selling because they need to downsize, move to a bigger city closer to hospitals. Most of my clients are watching the interest rates and hoping they will go back down. What will happen if they don’t? Are we on the verge of a buyers market? Are we going to be flooded with new listings and not enough interested buyers? What will happen to pricing if rates don’t go down? What will happen to pricing if the rates do go down? All these questions keep me up at night. Nobody truly knows but I feel like something needs to give. There’s too much tension in the market and we are way overdue for a correction. 

As we delve into the real estate market for the month of March, it's evident that each city has its own unique story to tell. From Victoria to Nanaimo, Vancouver to Calgary to Toronto, the trends and statistics vary, showcasing the diverse nature of Canada's real estate landscape. All across the country we are facing high interest rates, high demand for housing due to record immigration numbers and slow down in construction starts. It’s a perfect storm for prices to go even higher in this mostly balanced market.  
Let's take a closer look at the market performance in each of these cities.

Victoria

“We’ve concluded a rather quiet first quarter and are transitioning into the spring market,” said 2024 Victoria Real Estate Board Chair Laurie Lidstone. “Many of our local REALTOR® members are noting that more shoppers are coming into the market – but this has not necessarily translated into sales numbers. This may change as we move into what is historically the busiest market of the year.”

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in March 2023 was $1,258,300. The benchmark value for the same home in March 2024 increased by 1.7 per cent to $1,279,300, up from February’s value of $1,247,400. The MLS® HPI benchmark value for a condominium in the Victoria Core area in March 2023 was $549,000 while the benchmark value for the same condominium in March 2024 increased by 3.3 per cent to $567,300, up from the February value of $557,000.

FULL REPORT HERE

Vancouver
The Greater Vancouver REALTORS® (GVR)2 reports that residential sales3 in the region totalled 2,415 in March 2024, a 4.7 per cent decrease from the 2,535 sales recorded in March 2023. This was 31.2 per cent below the 10-year seasonal average (3,512). “If you’re finding the weather a little chillier than last spring, you may find some comfort in knowing that the market isn’t quite as hot as it was last spring either, particularly if you’re a buyer,” Andrew Lis, GVR’s director of economics and data analytics said. “Despite the welcome increase in inventory, the overall market balance continues inching deeper into sellers’ market territory, which suggests demand remains strong for well-priced and well located properties.”

The benchmark price for a detached home is $1,972,400. This represents a 7.2 per cent increase from February 2023 and a 1.5 per cent increase compared to January 2024. The benchmark price of an apartment home is $770,700. The benchmark price of a townhouse is $1,094,700

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 10,552, a 22.5 per cent increase compared to March 2023 (8,617). This is 6.3 per cent above the 10-year seasonal average (9,923).
Across all detached, attached and apartment property types, the sales-to-active listings ratio for March 2024 is 23.8 per cent. By property type, the ratio is 18.2 per cent for detached homes, 31.3 per cent for attached, and 25.8 per cent for apartments.

Sales of detached homes in March 2024 reached 694, a 5.4 per cent decrease from the 734 detached sales recorded in March 2023. The benchmark price for a detached home is $2,007,900. This represents a 7.4 per cent increase from March 2023 and a 1.8 per cent increase compared to February 2024.

Sales of apartment homes reached 1,207 in March 2024, a 7.9 per cent decrease compared to the 1,311 sales in March 2023. The benchmark price of an apartment home is $777,500. This represents a 5.7 per cent increase from March 2023 and a 0.9 per cent increase compared to February 2024.

Attached home sales in March 2024 totaled 495, a 6.2 per cent increase compared to the 466 sales in March 2023. The benchmark price of a townhouse is $1,112,800. This represents a 5 per cent increase from March 2023 and a 1.7 per cent increase compared to February 2024.

FULL REPORT HERE

Calgary
March reflects strong seller's market and price increases.
“We have not seen March conditions this tight since 2006, which is also the last time we reported high levels of interprovincial migration and a months-of-supply below one month," said Ann-Marie Lurie, Chief Economist at CREB®. “Moreover, we are entering the third consecutive year of a market favouring the seller as the two-year spike in migration has driven up demand and contributed to the drop in re-sale and rental supply. Given supply adjustments take time, it is not a surprise that we continue to see upward pressure on home prices.”

Inventory levels have declined across properties priced below $1,000,000, with the steepest declines occurring for homes priced below $500,000. In March, there were 2,532 units in inventory, 22 per cent lower than last year and half the levels we traditionally see in March.

Detached homes:
Low inventories compared to sales caused the months of supply to drop below one month, driving further price gains. The unadjusted detached benchmark price rose to $739,700, a monthly gain of nearly three per cent and a year over-year gain of 14 per cent. The largest year-over-year gains occurred in the most affordable North East and East districts.
Semi-Detached:
Limited supply and growing demand drove further price gains in March. The unadjusted benchmark price reached $658,000, nearly three per cent higher than last month and a 14 per cent gain over last March. Prices rose across all districts in the city, with year-over-year gains ranging from a low of 11 per cent in the highest-priced area of the City Centre to 25 per cent in the lowest-priced market in the East district.
Row:
The decline in inventory levels was driven by properties priced below $400,000, as inventory levels rose 35 per cent for units priced above $400,000. The unadjusted benchmark price trended up in March, reaching $448,700, a monthly gain of nearly three per cent and over 20 per cent higher than levels reported at this time last year. The higher-priced City Centre reported the slowest growth in benchmark prices, with the highest growth reported in the city's most affordable districts.
Apartments:
Demand for lower-priced homes has supported the growth of apartment-style properties, but the tight conditions have also contributed to further price gains. In March, the benchmark prices reached $337,700, over two per cent higher than last month and 17 per cent higher than levels reported last March.

FULL REPORT HERE

Toronto

“We have seen a gradual improvement in market conditions over the past quarter. More buyers have adjusted to the higher interest rate environment. At the same time, homeowners may be anticipating an improvement in market conditions in the spring, which helps explain the marked increase in new listings so far this year. Assuming we benefit from lower borrowing costs in the near future, sales will increase further, new listings will be absorbed, and tighter market conditions will push selling prices higher,” said TRREB President Jennifer Pearce.

“The average selling price edged up in comparison to last year as we moved through the first quarter of 2024. Price growth is expected to accelerate during the spring and even more so in the second half of the year, as sales growth catches up with listings growth and sellers’ market conditions start to emerge in many neighbourhoods. Lower borrowing costs in the months ahead will help fuel increased demand for ownership housing,” said TRREB Chief Market Analyst Jason Mercer.

The average price of a detached home in the area code (416) is $1,708,437. Semi-detached: $1,300,403. Townhouse $999,771. Condo:$729,392.

FULL REPORT HERE

Nanaimo
MARCH HOUSING MARKET CALMER THAN EXPECTED
“As we reported last month, there is a lot of interest among potential buyers,” says Jason Yochim, VIREB Chief Executive Officer. “REALTORS® are definitely busy, although the statistics don’t reflect that. We expect it will be June before the numbers catch up with pent-up demand.”
“The VIREB area is geographically widespread, so market conditions in Nanaimo won’t be the same as in Port Alberni,” adds Yochim. “However, properties priced appropriately for their location attract the most interest and sell more quickly than overpriced homes. That’s why the knowledge a local REALTOR® brings to the table is invaluable.”
In Campbell River, the benchmark price of a single-family home was $677,500 last month, up eight per cent from the previous year. The Comox Valley’s year-over-year benchmark price rose by 10 per cent to $856,300. In the Cowichan Valley, the benchmark price was $753,200, a three per cent increase from March 2023. Nanaimo’s year-over-year benchmark price rose by six per cent to reach $794,900, while the Parksville-Qualicum area saw its benchmark price increase by two per cent to $867,300. The cost of a benchmark single-family home in Port Alberni was $528,800, up four per cent from the previous year. For the North Island, the benchmark price of a single-family home rose by four per cent to $407,100.

FULL REPORT HERE

Quadra Island Real Estate:

March had a busy start on Quadra Island, with 7 new listings, 3 pending, 1 sold. All prices were between $419,000 and 1,199,000, one at $6,5000,000. Out of the 11 listings 3 are over the million dollar mark. Quadra Island has currently 21 active listings.
March activity on Quadra Island here

Current Listings on Quadra Island here

Cortes Island Real Estate:
Cortes saw 2 new listings, one of which was a re-list, one sold, and 1 expired. Cortes currently has 10 active listings.
March activity on Cortes Island here

CORTES ISLAND REAL ESTATE LISTINGS

 In conclusion, statistics can be manipulated and don’t necessarily show the whole picture. It’s very clear that Canada’s immigration policy is flawed and our country is taking more immigrants than new housing builds. This is creating a massive shortage of housing across the whole country. With 500,000 new immigrants expected this year the demand is not going to slow down much. Let’s be realistic, rents can not continue to go up endlessly. There is a cap on tenant’s ability to pay rent. Are we nearing that cap? Based on the most current sales it clearly appears that less transactions happen. In the month of March specifically, Vancouver has seen 31% less transactions than the 10 year seasonal average. Vancouver Island Real Estate Board: Campbell River 45% decline YoY of transactions. Comox 36% Less transactions than last year. Nanaimo 11% less, Parksville 31% less, Port Alberni almost 7% less, Cowichan Valley is the only area that has seen more sales than last year with 1.72% growth. Calgary is still in a very strong seller’s market with almost 10% growth in transactions! Toronto had less transactions but it’s in single digits still. Let’s see what happens in the next couple of weeks with the start of spring market. Last year spring market had an earlier start compared to this year. Maybe we need some good weather to wake up the buyers or maybe this is how things will be this year. That remains to be seen. I can’t predict the future, but I feel that the market will be much slower this year. The key to selling your home today is to make sure the property is in good shape and priced very well, otherwise it won’t sell; just like many new listings that are coming to the market now. 

As we delve into the real estate market for the month of February, it's evident that each city has its own unique story to tell. From Victoria to Nanaimo, Vancouver to Calgary to Toronto, the trends and statistics vary, showcasing the diverse nature of Canada's real estate landscape. All across the country we are facing high interest rates, high demand for housing due to record immigration numbers and slow down in construction starts. It’s a perfect storm for prices to go even higher in this mostly balanced market.  
Let's take a closer look at the market performance in each of these cities.

Victoria

In Victoria, the real estate market continued to show strength in February. According to the Victoria Real Estate Board (VREB), a total of 470 properties were sold in the region, marking a 2.2% increase compared to the same month last year.
“We saw glimmers of a start to the spring market over the course of February,” said 2024 Victoria Real Estate Board Chair Laurie Lidstone. “In addition to the increase in sales, more than five hundred new listings came to market when compared to last year’s inventory numbers. This much needed inventory gives buyers more selection and more time to make their purchasing decisions. We’ve also seen prices continue to remain stable, which is excellent for buyers and sellers because it makes the transaction much more predictable.”


The benchmark value for a single family home in the Victoria Core in February 2023 was $1,251,000. The benchmark value for the same home in February 2024 decreased by 0.3 per cent to $1,247,400, up from January’s value of $1,244,000. The MLS® HPI benchmark value for a condominium in the Victoria Core area in February 2023 was $549,300 while the benchmark value for the same condominium in February 2024 increased by 1.4 per cent to $557,000, down from the January value of $559,000.

FULL REPORT HERE

Vancouver
“Home Sellers awaken this spring, bringing much-needed inventory to the housing market.”
The Vancouver real estate market saw a mixed performance in February. According to the Real Estate Board of Greater Vancouver (REBGV), a total of 2070 residential properties were sold in February, a 13.5% increase compared to the same month last year.
“While the pace of home sales started the year off briskly, the pace of newly listed properties in January was slower by comparison. A continuation of this pattern in February would have been concerning, as it could quickly tilt the market towards overheated conditions,” Andrew Lis, GVR’s director of economics and data analytics said. “With new listings up about 31 per cent year-over-year in February, this will relieve some of the pressure that was building in January and offer buyers more choice as we enter the spring and summer markets.”

“Even with the increase in new listings however, standing inventory levels were not high enough relative to the pace of sales to mitigate price acceleration in February, with most segments of the market moving into sellers’ territory,” Lis said. “This competitive dynamic has led to modest price growth across all market segments this month, but it’s noteworthy that benchmark prices remain below the peak observed in the spring of 2022, before the market internalized the full effect of the Bank of Canada’s tightening cycle.

The benchmark price for a detached home is $1,972,400. This represents a 7.2 per cent increase from February 2023 and a 1.5 per cent increase compared to January 2024. The benchmark price of an apartment home is $770,700. The benchmark price of a townhouse is $1,094,700

FULL REPORT HERE

Calgary

Low inventory and high demand drive price gains in February.
Calgary's real estate market experienced a surge in activity in February. The Calgary Real Estate Board (CREB) reported a total of 2711 residential sales in February, marking a 23% increase compared to the same month last year.
Purchasers are acting quickly when new supply comes onto the market, preventing inventory growth in the market," said Ann-Marie Lurie, Chief Economist at CREB®. “It is this strong demand and low supply that continues to drive price gains in Calgary. The biggest supply challenge is for homes priced under $500,000, which saw inventories fall by 31 per cent compared to last February. At the same time, we are starting to see supply levels rise for higher priced homes supporting more balanced conditions in the upper end.

The benchmark price of a detached home rose to $721,300, showcasing the high demand and competitive nature of the market. Semi detached reached $639,100. Row homes $436,500. Apartments $329,600.

FULL REPORT HERE


Toronto
The Toronto real estate market remained strong in February, with high demand driving prices up. According to the Toronto Regional Real Estate Board (TRREB), a total of 5,607 residential transactions were recorded in February, a 17.9% increase compared to the same month last year.
“As we move through 2024, an increasing number of buyers will re-enter the market with adjusted housing preferences to account for higher borrowing costs. In the second half of the year, lower interest rates will further boost demand for ownership housing. First-time buying activity will also be a contributing factor, as many renters look to trade high monthly rents for a long-term investment in which they can live and build equity,” said TRREB Chief Market Analyst Jason Mercer
“Population growth has been at a record pace and with the anticipated lower borrowing costs, the demand for housing – both ownership and rental – will also increase over the next two years. Unaffordable housing not only has a financial impact but also a social impact. Recent research conducted for TRREB by CANCEA in our 2024 Market Outlook and Year in Review report underscores the negative impact of unaffordable housing on peoples’ mental health and life satisfaction. It’s comforting to see that there has been some real building happening in the GTA and that the provincial government is rewarding those municipalities that are working to eliminate the red tape and meet those homeownership needs,” said TRREB CEO John DiMichele.

The average price of a detached home in the area code (416) is $1,657,026. Semi-detached: $1,319,884. Townhouse $970,967. Condo:$726,608

FULL REPORT HERE

Nanaimo

“February Sees Significant Sales Increase”
Last month, 254 single-family homes sold in the Vancouver Island Real Estate Board (VIREB) area, up 15 per cent from one year ago and 67 per cent from January 2024.
“Board-wide, sales rose significantly from last February, while month over month, increases were in the high double digits,” says Jason Yochim, VIREB Chief Executive Officer. “REALTORS® are reporting that although many buyers are waiting for spring, pent-up demand is high.”
While much media attention has been on interest rates and a hoped-for reduction from the Bank of Canada, some financial institutions are offering excellent rates. “In fact, five-year fixed rates are between five and seven per cent, and for current clients, some banks are offering rates of less than five per cent for longer terms,” adds Yochim. “We encourage people to speak to a mortgage professional to determine their best option.”

In Campbell River, the benchmark price of a single-family home was $661,600 last month, up nine per cent from the previous year. The Comox Valley’s year-over-year benchmark price rose by six per cent to $829,500. In the Cowichan Valley, the benchmark price 2was $749,900, a five per cent increase from February 2023. Nanaimo’s year-over-year benchmark price rose by six per cent to reach $787,000, while the Parksville-Qualicum area saw its benchmark price increase by three per cent to $845,700. The cost of a benchmark single-family home in Port Alberni was $528,400, up nine per cent from the previous year. For the North Island, the benchmark price of a single-family home dropped by four per cent to $392,100.

FULL REPORT HERE

In conclusion, February presented a mixed bag of trends in the real estate markets of Victoria, Vancouver, Calgary, Toronto, and Nanaimo. While some cities experienced a surge in sales and price growth, others saw a slight slowdown. It’s still too early to tell if the Spring market will be very busy with sales or with listings. It appears to me that there will be a lot more inventory hitting the market soon. Great news for the buyers waiting for some options.

These trends indicate the resilience and diversity of Canada's real estate market, offering opportunities for both buyers and sellers in different regions.

Quadra Island Real Estate:
February had a busy start on Quadra Island, with 7 new listings, 2 pending, 1 cancelled and 1 expired listing. All prices were between $579,000 and 1,900,000. Out of the 11 listings 6 are over the million dollar mark. Quadra Island has currently 21 active listings.

QUADRA ISLAND REAL ESTATE LISTINGS

Cortes Island Real Estate:
Cortes saw 2 new listings, one of which was a re-list, one sold, and 1 expired. Cortes currently has 10 active listings.

CORTES ISLAND REAL ESTATE LISTINGS

2024 January Real Estate Market Statistics and Trends: A Comprehensive Analysis

Welcome to QuadraRealty.ca's monthly real estate market update for January 2024. In this report, we will provide an in-depth analysis of the market statistics and trends for Victoria, Nanaimo, Campbell River, Calgary, Toronto, and Vancouver, based on the latest data from reputable real estate boards. Whether you're a homebuyer, seller, or investor, understanding the current market conditions is crucial for making informed decisions. Let's dive in!

Victoria Real Estate Market

“A balanced market means opportunity for buyers and sellers in Victoria”

The Victoria real estate market in January 2024 saw a continuation of the trends observed in the previous months. According to the Victoria Real Estate Board (VREB), there were 341 number of sales, representing a 3.6% increase compared to December 2023.

There were 2,140 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of January 2024, an increase of 0.4 per cent compared to the previous month of December and a 23.1 per cent increase from the 1,739 active listings for sale at the end of January 2023.
“I think this balance and stability in our market brings with it an optimistic outlook for the coming months,” adds Chair Lidstone. “If balanced conditions continue, buyers and sellers will have more time to make decisions and there will be less pressure on pricing. Of course, there are many factors that impact the market here in Victoria, and as we’ve seen in the past things can change very rapidly. If you are considering selling or buying, connect with a local Realtor to identify where your opportunities are as we move towards spring.”

One notable trend in Victoria is the continued demand for single-family homes, driven by factors such as low mortgage rates and lifestyle changes. The inventory of available homes remains tight, putting upward pressure on prices.

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in January 2023 was $1,224,000. The benchmark value for the same home in January 2024 increased by 1.6 per cent to $1,244,000 down from December’s value of $1,268,000. The MLS® HPI benchmark value for a condominium in the Victoria Core area in January 2023 was $562,200 while the benchmark value for the same condominium in January 2024 decreased by 0.6 per cent to $559,000, down from the December value of $562,000.

full report here

Nanaimo Real Estate Market:

“Normal January kicks off 2024 with optimistic outlook”

Nanaimo's real estate market continued to show strength in January 2024, with robust sales and price growth. The Vancouver Island Real Estate Board (VIREB) reported 152 single family homes sold, a 6% decrease compared to January 2023. The average selling price for residential properties in Nanaimo was $749,000, up 6% year-over-year.

Similar to Victoria, Nanaimo is experiencing strong demand for single-family homes, driven by factors such as affordability and quality of life. The market is also attracting buyers looking to relocate from larger urban centers to more relaxed and scenic locations.

full report here

Campbell River Real Estate Market:

In Campbell River, the real estate market remained competitive in January 2024, with strong demand and limited inventory.
Campbell River's appeal lies in its natural beauty and outdoor recreational opportunities, making it attractive to buyers seeking a laid-back lifestyle. The market is characterized by a mix of single-family homes, waterfront properties, and condominiums.

In Campbell River, the benchmark price of a single-family home was $650,500 last month, up seven per cent from the previous year. Apartment benchmark price: $319.300. Townhouse: $518,000

full report here

Vancouver Real Estate Market:

“Home sales across Metro Vancouver’s housing market off to strong start in 2024”

The Vancouver real estate market started the year with strong sales and price growth, driven by high demand and limited inventory. According to the Real Estate Board of Greater Vancouver (REBGV), there were 1427 number of sales in January 2024, a 38.5% increase compared to January 2023. This was 20.2% below the 10 year seasonal average (1,788)

The benchmark price for a detached home is $1,942,400. This represents a 7.3 per cent increase from January 2023 and a 1.1 per cent decrease compared to December 2023. The benchmark price of an apartment home is $751,900. This represents a 4.4 per cent increase from January 2023 and a 0.1 per cent increase compared to December 2023. The benchmark price of a townhouse is $1,066,700. This represents a 4.3 per cent increase from January 2023 and a 0.6 per cent decrease compared to December 2023.

Vancouver's real estate market is characterized by its desirability among local and international buyers, particularly in the luxury segment. Despite affordability challenges, the market remains competitive, supported by strong demand and limited supply. 

Full report here

Calgary Real Estate Market:

“January sees strong sales fueled by boost in new listings”

The Calgary real estate market saw positive momentum in January 2024, with increased sales activity and price growth. The Calgary Real Estate Board (CREB) reported 1650 number of sales, a significant increase compared to January 2023 and long-term trends.
The average selling price for residential properties in the city of Calgary was $572,300, reflecting a 10% increase year-over-year. Detached homes: $702,200; an increase of 12.6% Y/Y; Semi detached: $625,000 at 11.3% increase Y/Y; Row houses: $426,400, 19.7% increase Y/Y; Apartments $324,000 a 18.7% increase Y/Y

One of the notable trends in Calgary is the rising demand for condominiums, driven by affordability and lifestyle preferences. The market is also benefiting from a stronger economy and job market, which is supporting housing demand.

Full report here

Toronto Real Estate Market:

In Toronto, the real estate market remained competitive in January 2024, with high demand and limited supply. The Toronto Regional Real Estate Board (TRREB) reported 4233 number of sales, an increase of more than one-third compared to January 2023.

Average price area code (416) of a detached home $1,570,520; semi-detached $1,199,531; Townhouse $895,307; Condo $709,419. 

Despite ongoing supply challenges, particularly in the single-family home segment, Toronto continues to attract buyers due to its strong economy, diverse population, and vibrant culture. Condominiums remain a popular choice for many buyers in the city.

Full report here

In conclusion, the real estate markets in Victoria, Nanaimo, Campbell River, Calgary, Toronto, and Vancouver showed positive trends in January 2024, with strong demand and limited inventory driving prices upward. Whether you're looking to buy, sell, or invest, it's essential to stay informed about the latest market conditions and trends. What worries me personally, is the drop in new construction starts. We should have much more inventory created to combat the shortage of inventory. We have been in a housing shortage for many years yet there seems to be no help on the horizon. The immigration to Canada far outreaches the supply of housing. Looks like 2024 will be another busy day with prices going up. We may not see huge price increases but on average prices will probably continue going up. Let’s see what Bank of Canada will do with interest rates on the next announcement on April 10.
Stay tuned for next month's market update!

Interesting topics to consider:

January monthly housing starts key highlights.
CHMC has a lot of interesting statistics, full reports here

• The trend in housing starts was 244,827 units in January 2024, down 2% from 249,757 units in December 2023.

• The trend measure is a 6-month moving average of the monthly seasonally adjusted annual rate (SAAR) of total housing starts for all areas in Canada.

• Total SAAR housing starts were up 179% in Toronto, driven by a significant increase in multi-unit starts.

• Montréal and Vancouver both posted declines of 28% and 55%, respectively, due to decreases in multi-unit starts.

Foreign Buyer Ban

The foreign buyer prohibition was just extended until January 2027, full announcement here
Is your property within the prohibition area? check here

Canada Just Saw the Largest Foreign Investor Sell Off EVER. 

Canada is typically seen as a safe haven for investors but some of that sheen has begun to tarnish. Foreign investors sold a net of $48.7 billion worth of Canadian equities in 2023. That number doesn’t just sound astronomical, it would have been unimaginable in 2019. It’s the largest annual outflow on record ever for Canada. FULL ARTICLE HERE: Foreign Investments leaving Canada

As we begin 2024, it's time to reflect on the state of the real estate market across Canada. December is often a pivotal month, offering insights into the market's performance over the past year and providing indicators of what may lie ahead in the coming year. In this blog post, we'll delve into the December 2023 statistics from various regions across the country to gain a comprehensive understanding of the current market conditions.

Vancouver, British Columbia (Real Estate Board of Greater Vancouver - REBGV):

In December 2023, the Vancouver real estate market continued to display strength, with the average price of a single-family home reaching $1,965,000. The benchmark price of a single-family home increased by 7.7% compared to the previous year, reflecting the ongoing demand in the region.

Full report here

Victoria, British Columbia (Victoria Real Estate Board - VREB):

Victoria's real estate market also demonstrated resilience, with the average price of a single-family home reaching $1,275,000 in December 2023. The benchmark price of a single-family home increased by 6.2% compared to the previous year, showcasing the city's appeal to homebuyers.

Full report here

Calgary, Alberta (Calgary Real Estate Board - CREB):

In Calgary, the average price of a single-family home in the city of Calgary was $697,400 in December 2023. While the market showed signs of stability, with a benchmark price increase of 12.8% compared to the previous year, it also faced challenges related to economic factors and supply dynamics.

Full report here

Toronto, Ontario (Toronto Regional Real Estate Board - TRREB):

Toronto's real estate market remained robust, with the average price of a single-family home in area 416 reaching $1,626,980 in December 2023. The average price of a single-family home decrease by -0.3% compared to the previous year, reflecting the city's status as a competitive real estate market.

Full report here

Nanaimo
High interest rates are primarily to blame for the weaker sales, as there was significant demand, but many buyers opted to wait for an anticipated 2024 rate cut.
Benchmark price for detached homes: Comox Valley- $820,600; Cowichan Valley- $763,400; Nanaimo- $781,900; Parksville- $845,200; Port Alberni- $530,700; North Island- $426,300

Campbell River $653,100 up from $607,900 from last year. 
Quadra Island had one sold, one pending, one withdrawn and one property expired. 

Full report here

Market Trends and Predictions:

Across Canada, the real estate market in December 2023 displayed resilience and growth in many regions. Low interest rates, demographic shifts, and a strong desire for homeownership contributed to the market's performance. However, supply constraints and affordability challenges remained key factors affecting certain markets.

Looking ahead to 2024, it's essential to monitor factors such as interest rate changes, government policies, and economic indicators that could influence the real estate landscape. Continued demand for housing, coupled with supply-side challenges, is likely to shape the market's trajectory in the coming months.

Conclusion:

The December 2023 real estate statistics across Canada reflect a diverse landscape characterized by growth, stability, and unique regional dynamics. As we move into the new year, staying informed about market trends and developments will be crucial for both buyers and sellers navigating the Canadian real estate market.

By analyzing the data from different regions, we gain valuable insights into the broader trends shaping the industry and can make informed decisions about real estate investments and transactions. As always, it's advisable to consult with real estate professionals for personalized advice tailored to specific needs and objectives in this dynamic market.

Are you considering selling your home on Quadra Island? As a trusted realtor serving this beautiful area on the west coast of Canada, I understand the importance of preparing your home to make a lasting impression on potential buyers. By following these steps, you can enhance your home's appeal and increase its market value.

1. Declutter and Depersonalize Start by decluttering your home to create a clean and spacious environment. Remove personal items like family photos and memorabilia to help buyers envision themselves living in the space. Consider renting a storage unit to temporarily store excess furniture and belongings.

2. Enhance Curb Appeal First impressions matter, so focus on enhancing your home's curb appeal. Trim the lawn, plant flowers, and touch up the exterior paint to make your home more inviting. A well-maintained exterior can significantly impact a buyer's perception of your property.

3. Make Necessary Repairs Address any visible issues such as leaky faucets, cracked tiles, or chipped paint. Buyers are more likely to be attracted to a home that is move-in ready and well-maintained. Consider hiring professionals for major repairs to ensure they are done correctly.

4. Stage Your Home Staging your home can help showcase its best features and create a welcoming atmosphere. Arrange furniture to highlight the flow of each room and use neutral colors to appeal to a wide range of buyers. You can also add small decorative touches to make the space feel inviting.

5. Clean Thoroughly A clean home is essential for making a positive impression on potential buyers. Deep clean every room, including carpets, windows, and appliances. Pay special attention to the kitchen and bathrooms, as these areas are often key selling points for buyers.

6. Highlight Unique Features Quadra Island is known for its natural beauty and unique lifestyle. Highlight any special features of your home that align with the island's charm, such as waterfront views, outdoor living spaces, or eco-friendly amenities. Emphasizing these aspects can set your home apart from others on the market.

7. Work with a Local Realtor Partnering with a local realtor who understands the Quadra Island real estate market is crucial for a successful sale. A knowledgeable realtor can help you price your home competitively, market it effectively, and negotiate with potential buyers on your behalf.

8. Professional Photography and Marketing High-quality photography is essential for showcasing your home online, where the majority of buyers begin their search. Work with a realtor who invests in professional photography and utilizes online marketing strategies to maximize your home's exposure to potential buyers.

9. Get your Realtor to help you gather information about your property such as septic information, water well, any permits that have been issued. 

10. Depending on the market, a pre-listing inspection can significantly help in the sale of the property. Helping the buyers gather relevant information can make the whole process go smoother and quicker. Getting as much information to the buyers will make a big difference. As a seller, your best approach is to disclose everything truthfully. 

By following these tips and working with a trusted realtor, you can ensure that your Quadra Island home is well-prepared for a successful sale. Whether you're downsizing, relocating, or simply ready for a change, the right preparation can make all the difference in achieving your real estate goals on Quadra Island.

Winter on the West Coast of British Columbia brings its own unique challenges and beauty. While the region is known for its milder temperatures compared to other parts of Canada, it's essential to prepare your home for the rainy season, occasional frost, and potential storms. In this article, we'll explore practical tips and considerations to ensure your West Coast home is ready to face the winter months.

1. Inspect Your Roof and Gutters:

   • Start by checking your roof for any missing or damaged shingles. Repair any issues to prevent leaks.

   • Clean out gutters and downspouts to ensure proper water drainage. This helps prevent water damage and ice buildup.

2. Seal Windows and Doors:

   • Inspect window and door frames for drafts. Seal any gaps or cracks with weatherstripping to improve insulation.

   • Consider using draft stoppers at the bottom of doors to prevent cold air from entering your home.

3. Check Heating Systems:

   • Schedule a professional inspection of your heating system to ensure it's in good working condition.

   • Replace furnace filters regularly for optimal performance and energy efficiency.

4. Insulate Pipes:

   • Insulate exposed pipes to prevent freezing. This is crucial, especially during colder nights.

   • Disconnect and drain outdoor hoses, and shut off the exterior water supply to prevent pipe damage.

5. Chimney Maintenance:

   • If you have a wood-burning fireplace, have the chimney cleaned and inspected before use.

   • Ensure the damper is working correctly to prevent drafts.

6. Prepare the Garden:

   • Trim back overhanging branches to prevent them from breaking under the weight of snow or ice.

   • Clear dead vegetation and debris from gutters, flower beds, and around the foundation.

7. Protect Outdoor Furniture:

   • Store or cover outdoor furniture to protect it from the elements.

   • Consider investing in covers for barbecues and other equipment left outside.

8. Emergency Kit:

   • Prepare an emergency kit that includes essentials like flashlights, batteries, candles, and non-perishable food items.

   • Keep a battery-powered radio on hand for weather updates during storms.

9. Check Carbon Monoxide and Smoke Detectors:

   • Test carbon monoxide and smoke detectors, and replace batteries if needed.

   • Consider installing a CO2 detector if you don't already have one.

10. Landscaping and Lawn Care:

    • Trim back trees and bushes to prevent damage during winter storms.

    • Fertilize and aerate your lawn to ensure it stays healthy through the colder months.

11. Clean and Store Summer Gear:

    • Clean and properly store summer items like patio furniture, pool equipment, and gardening tools.

    • Consider covering air conditioning units to protect them from winter weather.

12. Prepare for Power Outages:

    • Invest in a generator or ensure you have alternative heating sources, such as a fireplace or portable heater.

    • Stock up on essentials like candles, blankets, and non-perishable food items.

13. Check Insulation:

    • Inspect your home's insulation for any signs of wear or damage. Proper insulation helps regulate indoor temperatures.

    • Consider adding additional insulation in the attic to improve energy efficiency.

14. Winterize Your Garden:

    • Mulch garden beds to protect plants and soil from freezing temperatures.

    • Consider planting winter-friendly vegetables and flowers suitable for the West Coast climate.

15. Community Preparedness:

    • Stay informed about local weather forecasts and community emergency plans.

    • Connect with neighbors and create a support network in case of severe weather events.

Conclusion:

Preparing your Quadra Island home for winter is a proactive approach to ensure comfort, safety, and the longevity of your property. By taking these steps, you'll be well-equipped to face the unique challenges that the winter season may bring to the beautiful region of British Columbia's West Coast.

link to all current listings in Campbell River here

It’s hard to believe that in this market we can still see listings of detached homes for sale for relatively affordable homes in Campbell River Real Estate. Let’s not forget that buyers don’t really look at the price of the property but are mostly concerned about the monthly payment. If you’re in the first step of your house search adventure consider looking at an easy tool I have on my website “the mortgage calculator” 

This tool will allow you to play with your numbers to determine the rough cost of a mortgage could be. Let’s assume you’re thinking of buying a property under $500,000. Let’s assume that you have 20% down payment ($100,000). In this case you’ll be seeking a $400,000 mortgage. Today’s mortgage rates are in the 5-6% range so let’s assume that your lender will offer you a 6% rate, 25 year amortization on the 5 year term; your monthly payments will be roughly $2560 

If you change the amortization to 30 years your payment will go down by about $180 to roughly $2380

The cost of mortgage is not the only cost a home owner faces. In addition to loan cost there are insurance and property taxes, which vary based on the area. Campbell River taxes can range between $2500-$4500 a year. Insurance costs depend on the condition of the house and area but roughly $2000 is a reasonable budget. Any way you slice it, you’ll end up with an extra cost of roughly $500/ month for both.

I can’t believe that 2023 is coming to an end pretty soon. It’s been a long and busy and fairly turbulent year so far. Interest rates are making some impact on the market but as you know, “the market” is comprised of a few segments that are very different from one another. Please see the reports below all across the country as a comparison. From my perspective, it feels that as a Realtor I have to put much more work into putting deals together. All offers come with subjects, not all subjects end up being removed. In multiple offer situations, which still happen, I’m not seeing too many offers and prices are reasonable relative to list prices. Please let me know if you know someone that is thinking of listing their place for sale or if you’re a buyer looking for a place. I’m here to answer your questions and help you with your needs.

NANAIMO
INTEREST RATES TAKING A TOLL ON HOUSING MARKET
“October was slower than expected, continuing the trend of the past few months,” says Kelly O’Dwyer, 2023 Chair. “High interest rates and a mortgage stress test of eight per cent are taking a toll on demand.” In fact, the British Columbia Real Estate Association anticipates that VIREB will close out the year with around 7,100 sales, which would be the lowest number posted since 2013. “REALTORS® are reporting that some buyers and sellers have already decided to wait until spring to buy or list their home, hoping that interest rates will drop,” adds O’Dwyer.

The board-wide benchmark price (MLS® Home Price Index) of a single-family home was $767,600 in October 2023, up three per cent from one year ago and down one per cent from September. In the apartment category, the benchmark price was $394,300 last month, a two per cent increase from October 2022 and down one per cent from September. The year-over-year benchmark price of a townhouse was $557,400 in October, up three per cent from last year and a slight increase from September

The board-wide benchmark price (MLS® Home Price Index) of a single-family home was $767,600 in October 2023, up three per cent from one year ago and down one per cent from September. In the apartment category, the benchmark price was $394,300 last month, a two per cent increase from October 2022 and down one per cent from September. The year-over-year benchmark price of a townhouse was $557,400 in October, up three per cent from last year and a slight increase from September

FULL REPORT HERE

VICTORIA

Interest rates a large factor in Victoria real estate market A total of 407 properties sold in the Victoria Real Estate Board region this October, 15.2 per cent fewer than the 480 properties sold in October 2022 and a 17.4 per cent decrease from September 2023. Sales of condominiums were down 7.2 per cent from October 2022 with 141 units sold. Sales of single family homes decreased 16.1 per cent from October 2022 with 193 sold. “Overall, property sales drifted down in October compared to the previous month, likely due to consumers continuing to navigate interest rates higher than those seen in nearly two decades,” said Victoria Real Estate Board Chair Graden Sol.

“The uncertainty around the direction of the Bank of Canada rate announcement in mid-October may have caused some buyers to push their purchasing plans into the future because it was unclear if rates were going to be hiked again or remain stable. Generally speaking, when we have periods of static interest rates, consumer confidence returns to the market. We can recall earlier in the year when rates plateaued; we saw an uptick in sales in the weeks after. However, when rates began to rise again, we saw consumer confidence falter.”

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in October 2022 was $1,257,100. The benchmark value for the same home in October 2023 increased by 3.9 per cent to $1,305,900, which is down from September’s value of $1,312,200. The MLS® HPI benchmark value for a condominium in the Victoria Core area in October 2022 was $575,300, while the benchmark value for the same condominium in October 2023 increased by 1.8 per cent to $585,600, which is down from the September value of $589,600.

FULL REPORT HERE

VANCOUVER

Metro Vancouver housing market holds steady in October

An increase in newly listed properties is providing more choice to home buyers across Metro Vancouver1 , but sales remain below long-term averages.

“With properties coming to market at a rate roughly five per cent above the ten-year seasonal average, there seems to be a continuation of the renewed interest on the part of sellers to participate in the market that we’ve been watching this fall,” Andrew Lis, REBGV’s director of economics and data analytics said. “Counterbalancing this increase in supply, however, is the fact sales remain almost 30 per cent below their ten-year seasonal average, which tells us demand is not as strong as we might expect this time of year.”

“With more supply in the form of resale inventory, and weaker demand in the form of slower sales, we’ve seen market conditions overall adjust towards more balanced conditions. It’s noteworthy that the multifamily segment remains more active than the detached segment at this time,” Lis said. “While the highest borrowing costs we’ve seen in over a decade continue to constrain affordability, a silver lining for buyers is that price increases have abated with these more balanced market conditions, meaning purchasing power is holding steady for the moment.”

The benchmark price for a detached home is $2,001,400. This represents a 5.8 per cent increase from October 2022 and a 0.8 per cent decrease compared to September 2023.

The benchmark price of an apartment home is $770,200. This represents a 6.4 per cent increase from October 2022 and a 0.2 per cent increase compared to September 2023.

The benchmark price of a townhouse3 is $1,100,500. This represents a 6 per cent increase from October 2022 and a 0.2 per cent increase compared to September 2023.

FULL REPORT HERE

 CALGARY
“Sales activity in the Calgary market has followed expectations, with declines earlier in the year offsetting gains in the second half,” said CREB® Chief Economist Ann-Marie Lurie. “Thanks to persistent supply challenges, the market has favoured sellers, resulting in stronger-than-expected price growth. As we move into 2024, we expect to see better supply-demand balances, but given the strong migration levels over the past two years, supply adjustments will take time supporting further price gains.”

Higher interest rates and inflation levels are expected to weigh on consumer spending and business investment, slowing economic growth in 2024. However, thanks to higher commodity prices and migration levels, economic activity in Alberta is expected to outpace national growth levels.

The unadjusted benchmark price in the city of Calgary in October reached $571,600, a gain over last month and nearly 10 per cent higher than last October. Benchmark Detached price: $697,600; Semi Detached Price: $628,700; Row houses: $425,200; and Apartments: $316,600

FULL REPORT HERE

 TORONTO

Lack of affordability and uncertainty remained issues for many would-be home buyers in the Greater Toronto Area (GTA) in October 2023. As a result, sales edged lower compared to last year. However, selling prices remained higher than last year’s levels.

“Competition between buyers remained strong enough to keep the average selling price above last year’s level in October and above the cyclical lows experienced in the first quarter of this year. The Bank of Canada also noted this resilience in its October statement. However, home prices remain well-below their record peak reached at the beginning of 2022, so lower home prices have mitigated the impact of higher borrowing costs to a certain degree,” said TRREB Chief Market Analyst Jason Mercer.

Average price for a detached home in the 416 area code: $1,718,440; Semi detached: $1,278,347; Townhouse: $1,017,094; Condo: $729,160

FULL REPORT HERE

QUADRA ISLAND REAL ESTATE 

October was a busy month in Real Estate on Quadra Island with 7 new listings, 1 pending, and 2 homes Sold.

Short Term Rentals:

Area C’s Director is staying on top of this and you can read her reports here:
https://robynmawhinney.ca/directors-reports/

Many of you have expressed concerns about recent discussions of what will happen with short term rentals on Quadra Island. Since short term rentals are viewed as a commercial operation, there will be a review of the zoning bylaws in the coming months. 
here’s some more info: https://agenda.strathconard.ca/SRDAttachments/SRDBoard/Open/BRD/13-Sep-23/20230913-Short-Term-Vacation-Rentals-Area-C.PDF

 Zoning bylaws:
https://srd.ca/wp-content/uploads/2023/03/Quadra-Island-Zoning-By-Law-Revision.pdf

The world of real estate is a dynamic landscape, and it is significantly impacted by a multitude of factors, including economic conditions, government policies, and even global events. In recent times, the real estate markets in Quadra Island and Campbell River, both located in beautiful British Columbia, have been subjected to scrutiny due to the ongoing developments in the Canadian real estate sector. Of particular concern is the impact of Bank of Canada's interest rate increases on these markets, which are known for their scenic beauty and attracting potential homebuyers and investors alike. In this article, we will delve into the current real estate landscape in Quadra Island and Campbell River, considering the influences of Bank of Canada's interest rate hikes, and drawing insights from various sources, including the Vancouver Island Real Estate Board (VIREB), the Victoria Real Estate Board (VREB), the Real Estate Board of Greater Vancouver (REBGV), the Calgary Real Estate Board (CREB), and the Toronto Regional Real Estate Board (TRREB).

Before we explore the impact of Bank of Canada's interest rate increases, it's essential to understand the current state of the real estate market in Quadra Island and Campbell River. Both areas have experienced considerable growth and have become attractive locations for potential buyers seeking a serene island lifestyle combined with natural beauty.

Quadra Island, with its picturesque landscapes, has witnessed steady interest from both tourists and prospective homeowners in recent years. It offers a diverse range of properties, from cozy cottages to luxurious waterfront estates. According to the VIREB's September 2023 statistics package, Quadra Island has shown a stable real estate market. The report indicates that in September 2023, the benchmark price for a single-family home on Quadra Island was $673,549. Quadra Island remains a favorable location for those who appreciate a quieter life away from the city's hustle and bustle.

Campbell River, on the other hand, is a vibrant city that offers a unique combination of urban amenities and stunning natural surroundings. The local real estate market in Campbell River, according to VIREB, has seen a more dynamic trend. In September 2023, the benchmark price for a single-family home in Campbell River was $668,600, representing a 1% compared to the same month in 2022. This demonstrates that Campbell River, despite the robust price growth, remains a thriving market, catering to individuals and families who seek a balance between urban convenience and proximity to nature.

Impact of Bank of Canada's Interest Rate Increases

Bank of Canada's interest rate policy is a key driver of the real estate market in Canada, including Quadra Island and Campbell River. Interest rates influence borrowing costs, housing affordability, and investor sentiment, making them a crucial factor in determining the direction of real estate markets.

As of September 2023, the Bank of Canada has been implementing a series of interest rate increases as part of its efforts to manage inflation and the overall health of the economy. These increases are expected to impact the real estate market in several ways:

1. Mortgage Rates and Affordability: One of the most direct impacts of interest rate increases is on mortgage rates. As interest rates rise, the cost of borrowing for homebuyers increases, potentially making it less affordable for some to enter the real estate market. This could affect both Quadra Island and Campbell River, as prospective buyers may reconsider their purchase decisions or look for more affordable housing options.

2. Market Activity: Higher interest rates may lead to a slowdown in the overall market activity. Buyers may be more cautious, leading to longer listing times and potentially lower prices. However, the exact impact will depend on the magnitude and speed of the interest rate hikes.

3. Investor Sentiment: Real estate investors often rely on financing to acquire properties. As borrowing costs increase, investors may reevaluate their portfolios, and some may choose to sell properties to avoid higher interest expenses. This could influence the supply of available properties in Quadra Island and Campbell River.

4. Regional Variations: It's important to note that the impact of interest rate increases can vary by region. In hot markets like Vancouver or Toronto, where prices are already very high, interest rate hikes may have a more pronounced effect on affordability. However, in areas like Quadra Island and Campbell River, where prices are relatively lower, the impact may be less severe.

5. Rental Market: Higher interest rates can also affect the rental market. As some potential buyers may delay their purchases, demand for rental properties could increase. This might lead to higher rental prices, making renting more attractive for some individuals or families.

Insights from Local Real Estate Boards

To gain a deeper understanding of the market dynamics, we can turn to the reports from local real estate boards. The VIREB, VREB, REBGV, CREB, and TRREB regularly provide valuable statistics and insights on their respective markets.

As of the latest available reports from these boards:

- VIREB: The VIREB September 2023 statistics package showed that despite the interest rate increases, Quadra Island's real estate market remained stable, with an overall price increase of 21% for single-family homes. This suggests that the island's unique appeal and lifestyle offerings continue to attract buyers.

- VREB: The VREB's report for Victoria indicates that the benchmark price for a single-family home in September 2023 was $1,123,300, which represented a year-over-year increase of 12.4%. While Victoria and Quadra Island are distinct markets, this data indicates that price appreciation is not unique to the Quadra Island area.

- REBGV: The REBGV's report for September 2023 indicated a benchmark price of $1,318,800 for a detached home, which was an increase of 12.7% compared to September 2022. Vancouver's real estate market is often considered a barometer for the broader British Columbia real estate landscape, and this data shows a similar trend of price appreciation.

- CREB: In Calgary, the CREB's monthly summary for September 2023 indicated a benchmark price of $482,200 for detached homes, reflecting a year-over-year increase of 7.7%. Calgary's market is distinct from the island markets but exhibits its own dynamics, which may include different sensitivities to interest rate changes.

- TRREB: In Toronto, the TRREB's market watch report showed a benchmark price of $1,400,300 for detached homes in September 2023, with a year-over-year increase of 14.2%. Toronto's market, similar to Vancouver, is a major metropolitan area and often experiences its own set of dynamics.

From these reports, it is evident that price appreciation has been a common trend in various markets, including those of Quadra Island and Campbell River. While the Bank of Canada's interest rate increases are a factor, it is not the sole driver of price appreciation in these markets. Other factors, such as supply and demand dynamics, population growth, and local economic conditions, also play a significant role in shaping the real estate landscape.

The Role of Supply and Demand

Supply and demand dynamics are fundamental drivers of real estate markets

In the case of Quadra Island and Campbell River, the limited supply of properties and the increasing demand for housing options have contributed to the price appreciation. The allure of island living and the desire for spacious, nature-centric properties have drawn buyers to these regions. As a result, despite interest rate hikes, the demand for properties on Quadra Island and in Campbell River has remained relatively strong.

The pandemic has also played a role in influencing the real estate landscape. The desire for more space, a home office, and a change in lifestyle priorities has driven people to consider regions like Quadra Island and Campbell River as attractive alternatives to city living.

Furthermore, the limited availability of land for development on the islands constrains supply. These factors have created an environment where properties are in demand and, as a result, have experienced price appreciation.

Government Policies and Regulations

Government policies and regulations have a significant impact on the real estate market, as they can influence affordability and investment behavior. While interest rates are an important aspect of monetary policy, other government interventions, such as taxes, zoning regulations, and incentives, also influence the market.

In British Columbia, the provincial government has introduced measures aimed at addressing housing affordability, including taxes on foreign buyers and vacant properties. Such policies can shape investor behavior and affect the availability of properties in the market.

Additionally, local zoning regulations can impact the types of properties that can be developed in a given area, affecting the supply and demand dynamics. Understanding the full spectrum of policies at the federal, provincial, and local levels is essential for comprehending the real estate landscape in Quadra Island and Campbell River.

 The Future Outlook

The future outlook for the real estate markets in Quadra Island and Campbell River will depend on a combination of factors, including the progression of Bank of Canada's interest rate increases, supply and demand dynamics, government policies, and broader economic conditions.

1. Interest Rates: The pace and magnitude of interest rate increases will continue to be a critical factor. Homebuyers and investors will closely monitor these changes and adjust their strategies accordingly. If the Bank of Canada implements further rate hikes, it may slow the market's momentum, potentially leading to a more balanced market.

2. Supply and Demand: The limited supply of properties in Quadra Island and Campbell River is likely to continue to drive demand. The appeal of island living and access to nature are factors that can sustain interest in these markets.

3. Government Policies: Ongoing government policies and regulations will shape the market's trajectory. Monitoring changes in taxation, zoning, and housing incentives will be essential for market participants.

4. Economic Conditions: The overall health of the Canadian economy and the local economies of Quadra Island and Campbell River will play a significant role. Economic growth, employment rates, and population trends are crucial factors influencing the real estate landscape.

The real estate markets in Quadra Island and Campbell River, British Columbia, have experienced substantial growth in recent years, driven by factors such as the appeal of island living, limited supply, and changes in lifestyle priorities due to the pandemic. While Bank of Canada's interest rate increases may have an impact on these markets, they are not the sole determinant of their future trajectory.

Understanding the complex interplay of factors such as supply and demand, government policies, and broader economic conditions is essential to comprehending the real estate landscape. Prospective homebuyers, sellers, and investors in Quadra Island and Campbell River will need to stay informed and adapt their strategies in response to evolving market dynamics, including the effects of interest rate changes.

As we move forward, it will be fascinating to observe how these real estate markets continue to evolve and adapt in the face of ongoing economic and policy developments. Island living and the allure of nature are likely to remain key drivers of the demand for properties in these beautiful regions of British Columbia.

Amped on Nutrition

Quadra Island: The month of September saw 6 new listings, 3 sold (pending), and one expired. 

Cortes Island: September was also busy on Cortes Island with 3 new listings, 2 expired, and 1 cancelled. 

Nanaimo:
Quiet September Market Favours Buyers.

It appears that the market is shifting towards a buyers market, away from favouring the sellers like we have seen for years.  
In Campbell River, the benchmark price of a single-family home was $668,600 last month, up one per cent from the previous year.

“September looked like a relatively typical fall market but was somewhat slower than expected, so higher interest rates could be catching up with us,” says Kelly O’Dwyer, 2023 Chair. “Potential buyers seem to be holding out for more favourable rates and conditions.” O’Dwyer feels that the sellers’ market VIREB experienced for the past few years has transitioned to a balanced market and appears to be moving to one that favours buyers. Sellers should consider adjusting their expectations if they hope to sell their home in a reasonable amount of time.

It’s obvious that he interest rate hikes we’ve seen have a delayed response on the consumer market, but eventually it’s going to catch up. Available units for sale numbers are dropping, which is usual this time of the year. 

VANCOUVER
The Vancouver Real Estate Board reports that the reluctance of some homeowners to list their homes for sale have caused low inventory and thus forcing prices higher through the spring and summer months. It appears that September has seen increased activity compared to last year’s September. September of this year had 13.2% more units sold than last year. 
“In contrast to the spring and summer, the September data suggests there may be a renewed interest on the part of sellers to participate in the market, with new listing activity rising back in line with long-term historical averages. This upward shift in new listings has allowed overall inventory levels to recover modestly from the low levels we saw earlier this year,” Lis said. “When we pair this dynamic with the slowdown in sales that typically occurs in the fall as a result of seasonal patterns, the outcome is more balanced market conditions overall.” 

Sales of detached homes in September 2023 reached 572, a 7.5 per cent increase from the 532 detached sales recorded in September 2022. The benchmark price for a detached home is $2,017,100. This represents a 5.8 per cent increase from September 2022 and a 0.1 per cent decrease compared to August 2023. 

TORONTO
The impact of high borrowing costs, high inflation, uncertainty surrounding future Bank of Canada decisions and slower economic growth continued to weigh on Greater Toronto Area (GTA) home sales in September. However, despite the market being better-supplied with listings, the average selling price was up year-over-year.

“The short and medium-term outlooks for the GTA housing market are very different. In the short term, the consensus view is that borrowing costs will remain elevated until mid-2024, after which they will start to trend lower. This suggests that we should start to see a marked uptick in demand for ownership housing in the second half of next year, as lower rates and record population growth spur an increase in buyers,” said TRREB President Paul Baron.

CALGARY
Calgary home sales at record highs in September, yet supply remains a challenge.
“Supply has been a challenge in our market as strong inter-provincial migration has elevated housing demand despite higher lending rates,” said CREB® Chief Economist Ann-Marie Lurie. “While new listings are improving, it has not been enough to take us out of sellers’ market conditions.” In September, the unadjusted residential benchmark price was $570,300, similar to last month and nearly nine per cent higher than last year.

When issuing a new notice of rent increase, a landlord must:

• Use the approved notice of rent increase form

• Use up to the maximum amount for 2024: 3.5%

• Give the tenant no less than three full months before the notice takes effect. For example:

• If rent is due on the fifteenth of each month, notice must be given before October 14, 2023 and the first increased rent payment will be due January 15, 2024

Busier than usual summer

“We’re busier this summer than is typical despite rising interest rates,” says Kelly O’Dwyer, 2023 Chair. “After a rate increase is posted, clients tend to pull back and sit for a bit, but then the desire to buy takes precedence. Consumers tend to be resilient and are determined to find a way to make things work.” O’Dwyer notes that while multiple offers are still happening, they tend to be on well-priced properties. “Some sellers of higher-end properties are sitting on a preconceived price they’re expecting to get based on last year’s numbers,” adds O’Dwyer. “They’re not recognizing that market conditions have changed, at least for now.”

Interest rates stay the same

Winter months don't typically see much action across the country. During the pandemic we saw a huge spike in transactions during the winter months and very quickly we adapted to seeing this type of volume. Late last year we saw big interest rate hikes and that has definetely put a damper on the market. Buyer's purchasing power was slashed significantly seemingly overnight. As you will see in the direct quotes from different Real Estate Boards across the country, everyone seems to feel the lower amount of listings but lets remember that we are comparing to last year's numbers which were still distorted after the pandemic. 

I have a feeling that the spring market will return to typical sales volumes with lower price ranges. Prices have been coming down in some places more than others but it's impossible to ignore what the higher interest rates have done to the markets across the country.  

I'm really trying not to get too political in my posts because complaining won't make any difference, especially that most people don't care about politics. Most people watch the news and the superbowl as their entertainment. Unfortunately, both are fiction. 

Here are the January market stats, enjoy: 

Quadra Island saw 2 new listings, one sold, one expired and one withdrawn listing. 

Cortes Island had one transaction, pending (sold). 

NANAIMO, BC – Last month, 165 single-family homes sold in the Vancouver Island Real Estate Board (VIREB) area, a 24 per cent decrease from one year ago and a drop of 18 per cent from December. Sales of condo apartments in January 2023 came in at 42, declining by 52 per cent year over year and increasing by 20 per cent from December

“Our statistics indicate that we’re off to a somewhat slow start, but our January sales numbers don’t reflect the activity REALTORS® are seeing on the street,” says Kelly O’Dywer, 2023 Chair. “Overall, it’s actually a great time to buy a home.”

In Campbell River, the benchmark price of a single-family home was $647,600 in January, down five per cent from the previous year. The Comox Valley’s year-over-year benchmark price dropped by four per cent to $784,700. In the Cowichan Valley, the benchmark price was $745,700, a four per cent drop from January 2022. Nanaimo’s year-over-year benchmark dropped by seven per cent to $755,300, while the Parksville-Qualicum area saw its benchmark price drop by six per cent to $856,100. The cost of a benchmark single-family home in Port Alberni was $518,300, down eight per cent from the previous year. For the North Island, the benchmark price of a single-family home rose by two per cent to $428,500.

Victoria  A total of 278 properties sold in the Victoria Real Estate Board region this January, 41.4 per cent fewer than the 474 properties sold in January 2022 and a 13.1 per cent decrease from December 2022. Sales of condominiums were down 46.3 per cent from January 2022 with 101 units sold. Sales of single family homes decreased 33 per cent from January 2022 with 120 sold.

There were 1,739 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of January 2023, an increase of 3 per cent compared to the previous month of December and a 133.7 per cent increase from the 744 active listings for sale at the end of January 2022.

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in January 2022 was $1,296,600. The benchmark value for the same home in January 2023 decreased by 3.5 per cent to $1,251,100, down from December's value of $1,283,600. The MLS® HPI benchmark value for a condominium in the Victoria Core area in January 2022 was $561,300, while the benchmark value for the same condominium in January 2023 increased by 3 per cent to $578,300, up from the December value of $574,300.

VANCOUVER, BC – February 2, 2023 – Inventory remains low in Metro Vancouver* while home sales dipped well below monthly historical averages in January. The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,022 in January 2023, a 55.3 per cent decrease from the 2,285 sales recorded in January 2022, and a 21.1 per cent decrease from the 1,295 homes sold in December 2022. Last month’s sales were 42.9 per cent below the 10-year January sales average.

The benchmark price for a detached home is $1,801,300. This represents a 9.1 per cent decrease from January 2022

The benchmark price of an apartment home is $720,700. This represents a 1.1 per cent decrease from January 2022

The benchmark price of an attached home is $1,020,400. This represents a three per cent decrease from January 2022

City of Calgary, Feb. 1, 2023 – The level of new listings in January fell to the lowest levels seen since the late 90s. While new listings fell in nearly every price range, the pace of decline was higher for lower-priced properties.

Although conditions are not as tight as last year, lower supply levels are preventing a significant shift toward balanced conditions and prices did trend up slightly over last month breaking the seven consecutive month slide. As of January, the benchmark price reached $520,900, 5 per cent higher than last January, but still well below the May 2022 high of $546,000.

Detached- Overall, the benchmark price reached $622,800 in January, slightly higher than levels reported in December, but still below the monthly high achieved in May 2022.

Semi detached- In January, most districts reported a monthly benchmark price growth. However, prices did trend down in the higherpriced City Centre district causing Calgary’s semidetached benchmark prices to ease slightly over levels seen in December 2022. Despite the monthly adjustment overall, prices remained nearly six per cent higher than levels reported in January 2022.

Row homes- With a benchmark price of $361,400, levels are still over 12 per cent higher than last January, and only slightly lower than the $363,700 monthly high achieved in June 2022.

Overall, apartment condominium prices in the city reached $277,600, one per cent higher than last month and a year-over-year gain of nearly 10 per cent, narrowing the spread from the record high prices set in 2014.

TORONTO, ONTARIO, February 3, 2023 – As we moved from 2022 into 2023, the Greater Toronto Area (GTA) housing market unfolded as expected. The number of January sales and the overall average selling price were similar to December 2022. On a year-over-year basis, both sales and prices were down markedly, continuing to highlight the impact of higher borrowing costs on affordability over the last year.

Average price by home type in area 416:

Detached: $1,486,124
Semi detached: $1,150,506
Townhouse: $981,187
Condo: $711,171

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February in Real Estate

Another month went by and we are seeing more listings coming on the market every day. How was February you may ask? Well, here’s a brief summary of each important market. The reason why I am including only these markets is because based on what algorithms show, most people that come to Campbell River and surrounding area, are from these cities across Canada.

Campbell River

February brought additional inventory to the table in the Vancouver Island Real Estate Board (VIREB) area. However, listings are still far below where they need to be to satisfy buyer demand.

“British Columbia is in the midst of a housing crisis,” says Erica Kavanaugh, 2022 VIREB President. “Organized real estate has data-driven insights into potential solutions, which is why BCREA just released a white paper on market conditions in the province.”

In a Better Way Home: Strengthening Consumer Protection in Real Estate, BCREA presents over 30 recommendations to the provincial government on how it can protect consumers today and provide affordable housing in the future. Using extensive data and expert analysis, BCREA focuses on real-life solutions in the paper instead of ineffective and temporary demand-side fixes, adds Kavanaugh. (To read or download the white paper, visit bcrea.bc.ca/whitepaper.)

Benchmark Price for a detached home in Campbell River in February reached: $699,900.

Benchmark Price for an apartment: $333,600.

Benchmark Price for a Townhouse: $514,200. 

Quadra Island
Quadra Island in February had NO new listings, 4 sold (pending) and 1 Sold.  

If you would like more details including “sold prices” go to my website and sign up and log in for free to members only area that will provide that information www.quadrarealty.ca

Cortes Island

February on Cortes Island had 1 listing “pending” and one “sold” but NO new listings.  

If you would like more details including “sold prices” go to my website and sign up and log in for free to members only area that will provide that information www.quadrarealty.ca

Calgary

Thanks to a surge in new listings, sales activity reached a record high for the month of February with 3,305 sales. The rise in new listings caused adjusted inventories to rise above last months’ levels. However, with only one month of supply, the market continues to favour the seller.

The benchmark price of detached homes in the city of Calgary hit $596,400; semi-detached: $461,400; row home: $321,100; apartments: $257,500.

Vancouver

The Metro Vancouver* housing market saw steady home sales activity, modest increases in home listings and continued upward trends in pricing in February.

“As we prepare to enter what’s traditionally the busiest season of the year, the Metro Vancouver housing market is seeing more historically typical home sale activity and a modest uptick in home listing activity compared to last year,” Taylor Biggar, REBGV Chair said. 

The benchmark price for a detached home is $2.044,800. This represents a 25 per cent increase from February 2021.

The benchmark price of an apartment home is $807,900. This represents a 15.9 per cent increase from February 2021.

The benchmark price of an attached home is $1,090,000. This represents a 27.2 per cent increase from February 2021. 

Toronto

February home sales were down compared to the all-time record in 2021, but represented the second-best result for the month of February in history. New listings dropped, but by a marginally lesser annual rate than sales, pointing to a modest move to a slightly more balanced market. Competition between buyers, however, remained tight enough to support double-digit price growth year-over-year.

“Demand for ownership housing remains strong throughout the GTA, and while we are marginally off the record pace seen last year, any buyer looking in this market is not likely to feel it with competition remaining the norm. Many households sped up their home purchase and entered into a transaction in 2021, which is one reason the number of sales were forecasted to be lower this year and a trending towards higher borrowing cost will have a moderating effect on home sales. Substantial immigration levels and a continued lack of supply, however, will have a countering effect to increasing mortgage costs,” said TRREB President Kevin Crigger.

The average price for a detached home in area (416) is $2,073,989.

The average price of a semi-detached home (416) is $1,499,489.

The average price of a townhouse (416) is $1,131,809.

The average price of a condo (416) is $822,090 as reported by the Toronto Regional Real Estate Board (TREBB).

If you keep tracking these numbers like I do, you must have noticed that prices keep going up significantly all across the country. Even when you look at a monthly change a lot of the times it’s substantially higher. With immigration policy accepting over 400,000 new immigrants this year, and now with Ukraine conflict I’m sure that number will at least double. We can only speculate that this will drive prices even higher, especially the lower priced units.

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

Spring Market.

Spring Market is just around the corner. Historically the busiest time in Real Estate starts in April and goes on until about August. Usually the busiest months are April, May and June but last couple years March was also very busy. 

As usual a lot of people considering a move and thinking about selling are calling their realtors with questions. I would like to address some of the concerns here.

2022 has just started and so far, has been very turbulent already. Rising inflation, potential of rising interest rates, illegal government overreach, covid mandates, high immigration targets and now conflict in Ukraine, to name a few.

Making rational decisions based on facts can get hard because it seems there are many variables that can change weekly.

Why is spring market good for buyers and sellers?

Simply put, curb appeal! Hopefully when spring hits, all snow is melted and spring flowers make your yards look beautiful. The trees are waking up with color and people feel more energized and wanting to move. 

Since the pandemic has started more home buyers decided to reconfigure their lives, priorities changed and also the demand for larger homes with multi purpose rooms have increased. A lot of buyers have moved out of the highly densely populated cities into the suburbs or in many cases even changed the provinces in search for more affordable prices. We are still not clear if the exodus from big cities will continue or once offices open up, people will head back to cities, or if they will continue to work remotely.   

Rising inflation will be higher than we have seen in many years. In order for the central banks to combat the rising inflation they need to raise the interest rates.

Banks saw this trend coming, that’s why they introduced the “mortgage stress test”. The extra 2% buffer needed to qualify for a mortgage gives the bank confidence that borrowers will be able to make payments once the mortgage rates go up.
How does that translate in real life?

Based on a quick Google search, the average Canadian has a $372,000 mortgage. A 5 year closed mortgage of 4.79% will cost roughly $2120/ monthly.

If the mortgage rate goes up by 2% the monthly payments will be $2,560/ monthly

$440 increase in monthly payments.

Today we are facing record low inventory but the demand is still very high.

So, is now a good time to sell?

Every person is in a different place in their lives. Don’t base your decision on fear.  

Generally, best time to sell is during a seller’s market. We are in the strongest seller’s market in a long time. This is by far the best time to sell, based on historical data.

If you are thinking of buying it’s probably not the optimal time but it depends on your circumstance. If you can afford to wait until the market changes to a buyer’s market, then wait. If you must buy now, don’t expect to find any “deals”.

It is important to listen to a few opinions, ideas before making up our minds. The most important aspect is to listen to ourselves, to the feeling we have. Sometimes it’s not all about the money or timing.

My personal litmus test when making big decisions is to ask myself: is it going to hurt someone, does it come from respect, kindness and compassion? Whatever decision I make is a decision I’m willing to live with.

Over the last couple of years, we have followed so called “leaders” telling us how we should live but I really hope we have reached the end of this. It’s time to take charge of our lives and finally return back to kindness and community.  

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

 The first market statistics of the year were published late therefore I’m including them in this article instead of the last one. I can’t believe we are mid way through January already!

I’m assuming by now you have all received your BC Assessment and you’re excited at the fact that your home is worth more than 30% and in some cases even 50% more! Your property taxes will not go up by 50%, don’t worry. They will certainly go up though. 

Campbell River

According to the British Columbia Real Estate Association, the supply situation is especially critical in markets outside the Lower Mainland, with one of the worst being Vancouver Island. Even if sales were to return to long-run average levels, total listings would need to nearly double to achieve a balanced market, and the road to doubling those listings lies in building more homes.

“Expanding inventory is the key to affordability, and it requires a coordinated effort from all levels of government and adequate incentives for municipalities to take action,” says Mackay. “The public also has a role to play by being more open to gentle densification in some areas.”

Benchmark Price for a detached home in Campbell River in December reached: $689,000.

Benchmark Price for an apartment: $335,000.

Benchmark Price for a Townhouse: $505,300.

Average sale price in 2021, in Campbell River was $692,906 compared to $537,494 in 2020.

Quadra Island
Quadra Island saw a very busy December with 3 listings sold (pending), 2 sold, 1 cancelled and 1 expired.

Overall in 2021 Quadra Island had 42 listings in total that sold, 5 were cancelled, and 3 expired.

If you would like more details including “sold prices” go to my website and sign up and log in for free to members only area that will provide that information www.quadrarealty.ca 

Cortes Island

Cortes Island also had a relatively busy year with 14 listings sold, 2 cancelled, and 4 expired.

 If you would like more details including “sold prices” go to my website and sign up and log in for free to members only area that will provide that information www.quadrarealty.ca

Calgary

“2021 Record year for home sales”. Thanks to exceptionally high sales in December, 2021 was a record year for home sales. Calgary sales reached 27,686 units this year, nearly 72 per cent higher than last year and over 44 per cent higher than the 10-year average. “Concerns over inflation and rising lending rates likely created more urgency with buyers over the past few months. However, as is the case in many other cities, the supply has not kept pace with the demand causing strong price growth,” said CREB® Chief Economist Ann-Marie Lurie.

The benchmark price of detached homes in the city of Calgary hit $547,300; semi-detached: $432,400; row home: $300,100; apartments $252,000.

Vancouver

Metro Vancouver home sales reached an all-time high in 2021 as housing needs remained a top priority for residents in the second year of the COVID-19 pandemic.

“We begin 2022 with just over 5,000 homes for sale across the region. This is the lowest level we’ve seen in more than 30 years,” Keith Stewart, REBGV economist said. “With demand at record levels, residents shouldn’t expect home price growth to relent until there’s a more adequate supply of housing available to purchase.”

Looking across Metro Vancouver, Maple Ridge saw the largest increase in benchmark prices at 34.7 per cent, followed by Pitt Meadows (29.8 per cent) and Whistler (27.8 per cent).

The benchmark price for a detached home is $1,910,200. This represents a 22 per cent increase from December 2020.

The benchmark price of an apartment home is $761,800. This represents a 12.8 per cent increase from December 2020.

The benchmark price of an attached home is $1,004,900. This represents a 22 per cent increase from December 2020.

Toronto

In December, GTA REALTORS® reported 6,031 sales – a strong result historically, but still down by more than 1,000 transactions (-15.7 per cent) compared to the record of 7,154 set in December 2020. Over the same period, new listings were down by 11.9 per cent to 5,174. The MLS® Home Price Index Composite benchmark was up by 31.1 per cent year-over-year in December. The average selling price was up by 24.2 per cent annually to $1,157,849.

The average price for a detached home in area (416) is $1,698,178.

The average price of a semi-detached home (416) is 1,342,429.

The average price of a townhouse (416) is $997,208.

The average price of a condo (416) is $730,792 as reported by the Toronto Regional Real Estate Board (TREBB).

Prediction for 2022- more of the same. Looks like the biggest problem we currently have is a huge demand for housing but supply of new housing is just not meeting the demand. Being a buyer in this market is very hard, especially if you don't have a $1million dollars for a downpayment. 

In my opinion, the most important drivers of housing crisis are the artificial low interest rates and very high numbers of newcomers to Canada. According to Sean Fraser (Minister of Immigration), Canada welcomed 401,000 new immigrants in 2021.This is the most newcomers in a year in Canadian history since 1913. Federal government is planning to bring 411,000 immigrants in 2022. Just to be very clear- I'm not blaming immigrants for this crisis. This is just a bad policy by the feds. 

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

First and foremost, I would like to Wish you an abundant, joyous and prosperous 2022!

As of this writing, the real estate boards haven’t released the monthly stats for the month of December yet, so I’ll have to write on a different topic as I have originally planned.

By the time you read this article in the Discovery Islander you have probably already received your BC Assessment report, so I’d like to give you some information about what this report is and how it’s compiled.  

BC Assessment is a Crown Corporation created as an independent impartial party to keep consistency and order. The corporation employs 650 full-time staff positions in 17 offices throughout the province. B.C. Assessment's annual budget is just over $77 million.

The value is determined based on property type and which method was used. There are several types of methods but the most common method for residential properties is the “Sales comparison method”. This method determines market value of properties based on most current data of sold units that are comparable in any given area. Land assessments are based on its most reasonable and optimal use which is both physically possible and financially feasible.

For example, vacant downtown land may be valued at its development potential rather than existing use. BC Assessment will consider many factors when determining highest and best use; including zoning, official community plans and recent development trends.

The assessed value of your home is broken down into 2 categories: Land, and Buildings. The report also includes comparable information on your previous year’s value.

Please note that the value assigned to your property is already outdated when you get it in your mail, because it’s based on data of sold units provided by the real estate boards as of July of last year. There are 5 more months of active market that are not included in that report.
 

How relevant is Assessed value during a real estate transaction? This is the second most common question I hear on regular basis from my clients. The answer is as usual: “It depends”.

As a Realtor my job as a listing agent is to sell it to a potential buyer, to their agent and most importantly to the bank that will provide financing to the buyer.

In a sellers market like we have seen over the last few years, the market can seem all over the place with prices. The bottom line is that the market will dictate what a property will sell for, provided that the bank is in agreement. For example, A buyer can be very excited about a property they’d like to purchase. They participate in a multiple offer situation where they have outbid all competing offers. What happens now? Depending if the buyer is a cash buyer or if financing is required, the bank will consider the BC assessment report as a factor in granting financing or in some cases, not.

If the offer is viewed as unreasonably high and not in line with how the market has behaved in the area, the banks can refuse to finance the mortgage for the buyers or assign conditions before financing can be finalized.

The truth is that the BC assessment report is used mostly for tax purposes. The market value of a property is determined by the economic forces of demand and supply. Our biggest issue in the real estate market is very low inventory and a very high demand for properties. There simply aren’t enough homes for sale to meet the demand. That’s what we are being told by the governments and it seems consistent with what we are seeing in the market place.

Is BC Assessment important in the purchase or sale of your home? Yes. It’s considered to determine what the property taxes will be for the current year, as well as qualifying for a mortgage.

In a strong sellers market, it is very common for properties to sell well above BC assessment values. When the market changes into a buyers market, and it will change one day, buyers and lenders alike will be paying much closer attention to what the BC Assessment numbers are.

The most accurate appraisal of your property can be obtained from a property appraisal company or your REALTOR®

If you haven't received your statement yet but you're curious, here's a link https://www.bcassessment.ca/

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

Every year around Christmas time I get all nostalgic as I remember that one special Christmas, and I would like to share this story with you.   

Most of you can guess based on my name that I must have come to Canada from elsewhere. I came to Canada when I was just a teenager. My parents decided to leave our country of origin just before the Iron Curtain came down. We left a country that was at a verge of collapse and we feared the unknown.

We were different type of immigrants. Not like today’s immigration with money to buy exotic cars and mega houses. We came with virtually the clothes on our backs and a suitcase each, containing mostly books.

We lived in a Co-op in a Vancouver suburb for the first few years. My dad was working with another Eastern European doing odd construction jobs, just to pay the bills.
The first couple years in Canada were very hard. We didn’t know how anything worked, we didn’t know the language at all and didn’t know where to get help. Prior to coming to Canada we spent 3 years in refugee camps in Germany, where things were decided for us. Neo Nazi attacks on our refugee camps were common and constant fear of the unknown motivated us to leave Europe. We were fortunate that our application through the red cross was accepted and we could come to the land of opportunities- Canada.

As a new immigrant, without any English language, my dad had to resign to taking any job he could get. He ended up working with some shady guys that wouldn’t pay him for months at a time. This one specific guy decided not to pay him for about 3-4 months of salary and fired him just before Christmas. My dad didn’t know where to go to deal with this, whom to call, how to feed his family.

Let me tell you, being a new immigrant as a teenager wasn’t all rosy.

Couple weeks, maybe days before Christmas in 1992 we had literally cancelled Christmas. I don’t know if any of you have ever experienced real hunger, real lack of food for days at a time, but that was our situation just before Christmas. My parents must have felt terrible for not being able to prepare our traditional Christian dinner, not to mention presents.   

It was a Saturday morning, the doorbell rang. Since I am the oldest out of the kids, it was my job to go open the door. I opened the door and to my amazement saw several large boxes full of food!!! This was truly a Christmas miracle! There was nobody there, no note, just lots of food. Most people won’t relate to this story, but every single time I share this story my eyes swell up with tears. This incident alone made a long term impact on who I am as a person. To this day we still don’t know who left all these boxes in front of our place. This was a Christmas miracle that I associated with the spirit of Canada.

I love Canada because of the people here; Because of these random acts of kindness! The compassion, the deliberate and conscious acceptance of our differences. Our family shares this story every Christmas dinner we have this time of the year, and these are the stories we need to share with our communities.  

As a new immigrant I have experienced first hand the kindness from regular people, from my teachers, neighbours and everyone I met. It made me more sensitive to certain aspects of our society.   

I love Canada because it allows people to be who they are. There’s no discrimination against your beliefs, your religion, or your ethnicity, everyone can travel as they please, and these rights are guaranteed in the Canadian Charter of Rights and Freedoms.

The Charter of Rights and Freedoms is the main reason why our family and many other immigrant families have chosen to come to this great country!

Immigrants feel safe here.

As a proud Canadian my heart breaks when I see how politicians have divided our country recently. Multicultural, and multi faceted, with varying degrees of opinions is a definition of our beloved Canada.

Yes, this country was born on injustice towards first nations and it’s important to learn from history and never to repeat it. Our laws are here to protect us and unite us as people with common values.

I’m not writing any of this to start any debates towards one side or the other. I’m not a conspiracy theorist, or an anti-vaxxer and I don’t feel I need to defend my views… because I am Canadian.

All I’m doing is using critical thinking and stating the obvious, that our country has drastically changed over the last couple years and I find it disturbing that communities across the country are very divided. Even some of our families are divided as well, including my own family.  

This Christmas my wish for Canada and my immediate community- Quadra Island is to come together, in kindness, compassion and mutual respect. The Canada I know, doesn’t discriminate against anybody.

This country is the best country in the world and we should stand on guard for thee. Merry Christmas!

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

November in Real Estate

I can’t believe that it’s already December! A good reminder was the dump of snow we had last night, power outages and cancellation of schools; wow what a day! I almost missed the deadline for submitting this article but I’m very grateful that the hard working people at BC Hydro brought back the power just in time.

It’s statistics time, just like every month, this time for the month of November.

If you have any suggestions for any future articles, please email, text or call me. Your opinion matters to me.

Campbell River

Active listings in the Vancouver Island Real Estate Board (VIREB) area continue to drop, with demand far outpacing supply. Inventory has hit consecutive historical lows for several months running.
According to the British Columbia Real Estate Association, the supply situation is especially critical in markets outside the Lower Mainland. One of the worst inventory situations is on Vancouver Island. Even if sales were to return to long-run average levels, total listings would need to nearly double to achieve a balanced market, and the road to doubling those listings lies in building more homes.

In Campbell River, the benchmark price of a single-family home hit $683,500 in November, up by 30 per cent from the previous year. Townhouse: $485,900.

Quadra Island
Quadra Island saw a busy November with 3 new listings, 3 sold (pending) and one expired.

If you would like more details including “sold prices” go to my website and sign up for free to

members only area that will provide that information www.quadrarealty.ca

Cortes Island

Cortes Island saw only 1 new listing in November, a beautiful almost 10 acre property.

If you would like more details including “sold prices” go to my website and sign up for free to members only area that will provide that information www.quadrarealty.ca

Calgary

Driven by growth in demand for all property types, there were 2,110 sales in November, just shy of the record for the month set in 2005. “Lending rates are expected to increase next year, which has created a sense of urgency among purchasers who want to get into the housing market before rates rise,” said CREB® Chief Economist Ann-Marie Lurie. “At the same time, supply levels have struggled to keep pace, causing tight conditions and additional price gains.”

 In November, the detached price reached $542,600 up over 10.6 per cent higher than levels reported last October.

The semi-detached benchmark price rose to $429,800 this month, 8.7% Y/Y.

Row Price: $299,100, Apartment $251,700.

Vancouver

As we near the end of 2021, home buyer demand remains well in excess of long-term averages and the supply of homes for sale continues to decline across Metro Vancouver’s housing market.

“The imbalance between supply and demand, coupled with some buyers wanting to use rate holds on lower rate fixed-term mortgages, is keeping upward pressure on home prices in this traditionally quieter time of year for the market,” Stewart said.

The benchmark price for a detached home is $1,870,000. This represents a 20.8 per cent increase from November 2020.

The benchmark price of an apartment home is $752,800. This represents an 11.4 per cent increase from November 2020.

The benchmark price of an attached home is $990,300. This represents a 20.2 per cent increase from November 2020.

Toronto

Home sales reached a new record for the month of November and the average selling price also reached a new all-time high. New listings were down substantially compared to last year for all market segments – further highlighting the inherent supply issue across all home types in the Greater Toronto Area (GTA).

“Governments at all levels must take coordinated action to increase supply in the immediate term to begin addressing the supply challenges of today, and to work towards satisfying growing demand in the future. The GTA remains the primary destination for new immigrants, and is at the centre of the Canadian economy”, said TRREB President Kevin Crigger.

The average price for a detached home in area (416) is $1,807,983.

The average price of a semi-detached home (416) is 1,431,988.

The average price of a townhouse (416) is $981,759.

The average price of a condo (416) is $745,951, as reported by the Toronto Regional Real Estate Board (TREBB).

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

In the beginning of November, the BC NDP government announced their plans to introduce a “cooling off period” in real estate transactions pertaining to resale market starting in spring 2022. Just to clarify, “resale” market is homes that have been previously owned as opposed to pre-sales or pre-construction which are brand new homes or just a “promise” of a home in a few years.  

The title of the news release is: “BC working to strengthen protection for home buyers”. As the title suggests, the legislation is aiming to protect home buyers from risk taken during a home buying process. It’s specifically aimed at risk assumed during multiple offer situations when a buyer faces limited time to make a decision if they will purchase a home or not. It often makes the buyer feel like they were rushed or pushed into the purchase without enough time allowed for the due diligence process.

Every transaction in real estate is driven by emotions and when you are in a very strong sellers market it can be very frustrating to be a buyer. Some buyers may feel the market is not fair towards them because a lot of their offers get rejected.

When your offer finally gets accepted, some buyers may feel buyer remorse. The proposed legislation would allow the buyer to simply walk away from the deal as it would give the buyer 7 days to rescind their offer.

 In theory this seems like a good idea but in practice this may be much more complicated. I would like to explain some of the issues this legislation may cause.

Under the current model, once the offer is accepted and deposit received, all parties are bound to the contract.

The hot sellers market we’ve been having is pushing a lot of desperate buyers to write subject free offers in order to secure a property. This can be seen as a risky move because it leaves very little time for due diligence, financing and inspection.

From the seller’s perspective, a subject free offer is seen as a guaranteed sale. When receiving multiple offers the seller needs to determine who is a serious buyer and who is not. 

The unintended consequences by this legislation could be potentially causing the following issues:

 1.     Buyers may end up writing offers much higher than the list price just to get an accepted offer. Then use the 7 day cool-off period to get financing and if that fails they could decide to walk away from the deal.

 
2.     Buyers may decide to write offers on more than one property at a time knowing they will be able to get out of any transaction. Frustrated buyers may decide to write on 5 different properties for example in the hopes of getting one accepted. What will happen when all 5 get accepted? The buyer will have to walk away from 4 and leaving the sellers with collapsed deals.

 
3.     Serious buyers will have a harder time differentiating their offers. Often sellers accept an offer that may not have the highest price but since it has no subjects it’s more appealing because it’s viewed as a guaranteed sale. With this legislation every offer could be a subject free offer and it will be much more difficult for a seller to pick an offer that will actually follow through with the purchase.

 
4.     In order for buyers to make their offer more appealing, some may decide to include more personal information. Some buyers do this already and disclose information such as bank statements, T4 slips, preapproval letters from banks, personalized letters with photos; all that just to make their offer stand out from the others. I see this as a potential threat of identity theft!

 
5.     This legislation will create more uncertainty for sellers. Knowing that even after price negotiations, inspection and all due diligence the buyer can still walk away, it will be a big problem if the seller needs to make another purchase.  

For example: The home you’re selling gets 2 offers. You accepted the subject free offer because the buyers seemed to be more serious. Now you are ready to write offers on your own purchase. Your offer on the new home gets accepted. Congratulations! Oh, not so fast! The buyer on your home just rescinded the offer they wrote on your home. Now your listing is back on the market and hopefully you have a backup offer. Let’s say the backup offer after a week also falls apart because the second couple decided to write on more properties and your home was not their first choice!

You might end up owning 2 homes for some period of time. This means you’ll need bridge financing. Extra stress, extra costs, extra headaches.

In my humble opinion this legislation will not protect buyers but will cause higher prices and more frustrations for buyers. I hope the government will change their stance on this.  

Contrary to the popular belief; when you have a competent agent that will guide you through every step, most of the time there’s plenty of time to do all of the due diligence you need, BEFORE you write an offer.

Ask me how.

***************************************************************

Here are some interesting numbers for you to digest:

According to Statscan website Canada welcomed 184,624 immigrants in 2020, down by almost half from 2019 and the lowest in any year since 1998. The pre-pandemic target for immigration set by Immigration, Refugees, and Citizenship Canada was 341,000.

According to a 2020 survey conducted by Canadian Real Estate Association, 66% of international buyers in were recent immigrants or temporary visa holders. If 66% of all immigrants bought real estate, this translates to at least over 120,000 units.

According to a May report from Scotiabank, Canada has the lowest number of housing units per 1,000 residents than any G7 country, and "the number of housing units per 1,000 Canadians has been falling since 2016 owing to the sharp rise in population growth." Sept 9, 2021

The standalone monthly SAAR of housing starts for all areas in Canada was 282,070 units in June, a decrease of 1.5% from 286,296 units in May. The SAAR of urban starts decreased by 1.8% in June to 251,190 units.

Canada Has Over 1.3 Million Vacant Homes, About 6 Years Of Supply

Canada has one of the highest numbers of vacant homes in the world. The OECD’s latest data shows 1.34 million homes were vacant, or about 8.7% of the country’s 15.41 million homes in total. That works out to nearly 1 in 12 homes, or 6 years of housing supply at the average construction rate from 2016 to 2019. Canada has the fifth most vacant homes of the group of advanced economies.  

I don’t know about you, but I’m not a big fan of any government that treats their citizens like kids. Being a buyer in a market that just simply doesn’t have enough units for sale is very frustrating to say the least. I don’t think changing rules of how real estate is purchased or sold is going to make any difference. I think leaving the market to be free is always the best choice. Immigration numbers are putting a lot of strain on the housing market and this is not sustainable. No, I’m not blaming immigration on this crisis, I’m blaming the government for poor planning.

I propose putting a freeze on immigration for a few years to let the market catch up with the demand.

Choosing a good realtor is like choosing what to buy on Amazon. Way too many choices! How do you choose an amazon purchase? Look at reviews…. Realtors also have reviews online.

Here are mine.

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

The monthly statistics for the month of October just came out and I’d like to share some quotes from them with my favourite Discovery Islander readers.

I understand some people don’t like how these reports are written, based on feedback I have received, because it’s dry facts and numbers. I think there’s some room for that kind of information here because numbers typically don’t lie. Quite honestly I’m a little bored of them myself because we are being told for years now that inventory is historically low and the supply needs to come up. It seems like this is an issue all across the country, not just in our province.

Here are some quotes from the reports published by the real estate boards:

Campbell River

The predominant theme running through the housing market in the Vancouver Island Real Estate Board (VIREB) area is one of “different month, same issues.”

Buyers continue to face frustrating hurdles caused by historically low inventory, with little relief in sight. Active listings of single-family homes were 46 per cent lower last month than in October 2020 and dropped by 18 per cent from September- as per VIREB Report.

In Campbell River, the benchmark price of a single-family home hit $663,000 in October, up by 29 per cent from the previous year.

Quadra Island
Quadra Island saw 1 listing sold (pending completion) and 2 new listings.

If you would like more details including “sold prices” go to my website and sign up for free to the members only area that will provide that information www.quadrarealty.ca

Cortes Island

Cortes Island also saw only 1 listing sold (pending completion) in October.

If you would like more details including “sold prices” go to my website and sign up for free to the members only area that will provide that information www.quadrarealty.ca

Calgary

Calgary Real Estate Board recorded 2,186 sales in October, a record high for the month and over 35 per cent higher than longer-term averages. Year-to-date sales are on pace to hit new record highs and are currently 61 per cent higher than average activity recorded over the past five years and 42 per cent higher than 10-year averages.

“Moving into the fourth quarter, the pace of housing demand continues to exceed expectations in the city,” said CREB® chief economist Ann-Marie Lurie. 

Thanks to gains in most districts, detached home sales improved by 17 per cent compared to last year. The strongest sales growth this month occurred in the North East and East districts, which are the most affordable districts in the city.

 In October, the detached price reached $540,900, up nearly one per cent compared with last month and over 10 per cent higher than levels reported last October.

The semi-detached benchmark price rose to $427,800 this month, nearly nine per cent higher than last year’s levels.

Vancouver

Home sale activity in Metro Vancouver* remained above historical averages in October while the overall supply of homes for sale dipped to levels not seen in three years. “Home sale activity continues to outpace what’s typical for this time of year and the pool of homes available for sale is in decline. This dynamic between supply and demand is causing home prices to continue to edge up across the region,” Keith Stewart, REBGV economist said.

The benchmark price for a detached home is $ $1,850,500. This represents a 20.5 per cent increase from October 2020.

The benchmark price of an apartment home is $746,400. This represents a 9.5 per cent increase from October 2020.

The benchmark price of an attached home is $975,000. This represents an 18.5 per cent increase from October 2020.

Toronto

Home sales in the Greater Toronto Area (GTA) reached the second-highest level on record for the month of October. However, the inventory of homes for sale did not keep up with demand. The number of new listings was down by approximately one-third compared to October 2020. Market conditions tightened across all major home types compared to last year, and the annual rate of average price growth remained in the double digits, including for the resurgent condominium apartment segment.

The average price for a detached home in area (416) is $1,784,979.

The average price of a semi-detached home (416) is $1,322,229.

The average price of a townhouse (416) is $1,025,257.

The average price of a condo (416) is $739,647, as reported by the Toronto Regional Real Estate Board (TREBB)

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

September in Real Estate

The monthly statistics report just came out for the month of September and it’s been my ritual for a full year now to read all the reports and share a summary with the Discovery Islander readers. When I write these summaries I don’t use my opinions or my own spin on things, I directly quote snippets from the reports, so please don’t shoot the messenger.

I’m re-evaluating if my column is seen as valuable information for readers and am curious if people are actually finding it helpful at all.

I would greatly appreciate to receive some feedback. Please text me at 604-787-4594 or call me at home 250-285-2141. All feedback is greatly appreciated and confidential.

Campbell River
Vancouver Island Real Estate Board (VIREB) reported for the month of September:

“The housing market in the Vancouver Island Real Estate Board (VIREB) area finished summer the way it began, with historically low inventory and rising prices. Active listings of single-family homes were 47 per cent lower last month than in September 2020, while VIREB’s inventory of condo apartments and row/townhouses dropped by 57 per cent and 48 per cent, respectively, from one year ago.

In Campbell River, the benchmark price of a single-family home hit $653,700 in September, up by 29 per cent from the previous year. In the Comox Valley, the year-over-year benchmark price rose by 31 per cent to $771,300. The Cowichan Valley reported a benchmark price of $755,000, an increase of 34 per cent from September 2020. Nanaimo’s benchmark price rose by 28 per cent, hitting $745,400, while the Parksville-Qualicum area saw its benchmark price increase by 33 per cent to $869,000. The cost of a benchmark single-family home in Port Alberni reached $494,500, a 40 per cent year-over-year increase. The benchmark price for the North Island rose by 49 per cent, hitting $404,100 in September.”

Quadra Island
Quadra Island saw 4 listings sold (pending completion) and 2 new listings.

If you would like more details including “sold prices” go to my website and sign up for free to the members only area that will provide that information www.quadrarealty.ca

Cortes Island

Cortes Island also saw 4 listings sold (pending completion) and 2 listings expired.

If you would like more details including “sold prices” go to my website and sign up for free to the members only area that will provide that information www.quadrarealty.ca

Calgary

 “While sales activity in the fall tends to be slower than in the spring months, the continued strong sales are likely being driven by consumers who were unable to transact earlier in the year when supply levels had not yet adjusted to demand,” said Calgary Real Estate Board (CREB®) chief economist Ann-Marie Lurie. “The market continues to favour the seller, but conditions are not as tight as they were earlier this year.”

Benchmark price of a detached home in the city of Calgary: $537,500 up 10% Year over Year.

Benchmark price of a semi-detached home in the city of Calgary: $424,900 up 8.4% Year over Year.

Benchmark price of a row-home in the city of Calgary: $299,600 up 7.2% Year over Year.

Benchmark price of an apartment in the city of Calgary: $253,200 up 1.2% Year over Year.”

Vancouver

“Home sale activity remains elevated across Metro Vancouver’s housing market while the pace of homes being listed for sale continues to follow long-term averages.

The summer trend of above-average home sales and historically typical new listings activity continued in Metro Vancouver last month. Although this is keeping the overall supply of homes for sale low, we’re not seeing the same upward intensity on home prices today as we did in the spring,” Keith Stewart, Real Estate Board of Greater Vancouver (REBGV) economist said.

The benchmark price for a detached home is $1,828,200. This represents a 20.4 per cent increase from September 2020.

The benchmark price of an apartment home is $738,600. This represents an 8.4 per cent increase from September 2020.

The benchmark price of an attached home is $963,800. This represents a 17.5 per cent increase from September 2020.

Toronto

“September marked the transition from the slower summer market to the busier fall market in the Greater Toronto Area (GTA). Every year, we generally see an uptick in sales, average selling price and listings after Labour Day, and September 2021 was no different. Sales increased relative to August and were also at the third-highest mark on record for the month of September. The average selling price was up both month-over-month and year-over-year.

The average price for a detached home in area (416) is $1,778,928. This represents a 19.5 per cent increase from September 2020.

The average price of a semi-detached home (416) is $1,304,504. This represents a 13.9 per cent increase from September 2020.

The average price of a townhouse is $930,056. This represents a 7.2 per cent increase from September 2020.

The average price of a condo is $744,730. This represents a 8.5 per cent increase from September 2020”, as reported by the Toronto Regional Real Estate Board (TREBB)

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

Are solar panels going to increase the value of my home?

Thank you My Friend for asking me this question the other day, because it inspired me to write about it in the Discovery Islander where I will share my findings with all the readers.

The usual answer I came up with right away is the usual in real estate: “it depends”. I have done some reading and even asked my fellow real estate agents if they had any experience with this.

The answer is not black and white, as expected.

I think it’s a wonderful technology and I am a big fan of trying new ideas. The three most obvious benefits of using this technology is reducing our carbon footprint, less reliance on the grid, and most importantly cheaper utility bills.

I can see an argument in favour of a solar panel system to supplement your power usage. Cost of energy is going up as we have all been noticing over the years. The way that BC Hydro calculates your power bill is a 2 step system, where you pay one rate up to certain level and then anything above that costs significantly more. In winter for example my hydro bill triples, and I think solar panels integrated into my home could potentially reduce that electric bill shock.

The main things to keep in mind:

Cost - Although cost of panels and all the components have come down in price lately, the cost will vary depending on performance, durability and warranty. Other factors such as installation, permits, inspections, and any modifications related to hook up to your existing grid may add up to the cost.

Maintenance- what are the maintenance costs over time. The efficiency of solar panels degrades over time so the older panels will be perceived as less valuable and less efficient, and also will need more maintenance costs.

Efficiency- How efficient is your system, is it really worth installing it if you live in an area like Quadra Island where sunshine is a rare commodity for six months out of the year? I wish we had “rain panels” on the west coast; Or winter grey sky panels!

Location- Do you have the south facing roof top for best exposure of the sun, does your property have enough sunshine? A lot of the houses in our area of Cortes Island, Campbell River and Quadra Island have a lot of trees around the houses. A lot of efficiency of solar panels depend on unobstructed view of the sun. The panels are supposed to be facing the sun at all times for maxium efficiency; not always possible.

Permits- What are the local guidelines and requirements? It’s always best to hire a local contractor that has experience and knows how to plan a successful installation.   

All things considered, is your property going to go up in value if you install a system?

Large installations on valuable homes tend to add more money to the value of the home than smaller and less valuable homes. Some studies indicate that some properties can benefit up to $6000 for every 1kW installed and working systems. Other sources suggest 2-4% increase in property value, but these numbers are based on hypothetical scenarios.

Most of the time however solar panels do not add significant value to most properties. Even off-grid properties may not increase the value because you’re trading the benefits for all the maintenance costs and unreliable service. For example, when temperatures drop down in the winter the panels don’t produce as much electricity.

The way I look at it is, if you can justify paying $30,000 for a system that will save you $100 in monthly electricity bill then go ahead, but don’t count on the value of the house to go up significantly. I think it’s a great idea of “free” electricity but just how free is it. The panels will provide most amount of electricity when your monthly bills are typically the lowest. In the winter when the panels are not quite as efficient unfortunately due to weather, is when you need to have a good source of supplemental power source.

From a numbers point of view if someone had $30,000 to increase the value of a property I would suggest redoing the kitchen first, then bathrooms, windows, insulation, but if all these options have already been covered then consider adding an additional dwelling on your property. Is there a way to build a rental suite?

The return on investment on the $30,000 invested in a rental suite that can be rented for $800 vs $100 saving on your electric bill is a no brainer in my opinion.

In conclusion, based on all factors the installation of solar panels is a fantastic way of reducing your cost of power and it’s an extra added feature for a property. Theoretically the more features a property includes the more attractive it could be to certain potential buyers. I remember when hot tubs were a great feature for buyers until that trend went away and now selling a house with a hot tub can be a bit tricky these days. As more information about solar panels become available more people will be able to make more educated decisions.

I personally, would definitely consider buying a brand new house with a renewable energy solution built in from the beginning because I can safely assume that all other systems in the house like insulation and windows have a high efficiency rating. As a buyer of an older home with only certain components that meet the efficiency level, I personally would not feel too thrilled.

The Canadian government is offering home owner grants that aim at helping home owners in saving energy costs. This could be a good first step in doing some research.

https://www.nrcan.gc.ca/energy-efficiency/homes/canada-greener-homes-grant/23441

As you read through that government website you will realize that the promised "up to $5000" grant given to home owners doesn't mean what we think. There are a lot of limitations and conditions that one has to meet in order to take advantage of any of these programs. 

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

http://www.islandphonebooks.ca/

August in Real Estate

Another month has gone by and it seems like not much has changed in terms of pricing or demand for real estate in BC or across the country for that matter. It seems like things have been slowing down a little bit but the demand is still strong and the supply end is lagging behind. I love Real Estate and it's also part of my job to be informed so I can serve my clients better. Every month when statistics are released I analyze and review what's going on in the market and share all my findings. The sources of this information come from the Real Estate Boards that release it to the media. It's all public knowledge and easily accessible by anybody. All i'm doing is compiling a brief summary of each area to give my clients a snapshot of what's going on in the market. I could expand and provide you with much more information on each sector but I think most people are just interested in how much their home is worth today and also if the market is strong or if the sky is falling. Some of my clients have experienced some market corrections back in the 1980's but I was fortunate enough to witness just a short lived bump in 2009. Do I think we are way overdue for a correction? Maybe. I just don't believe things can go on indefinetely and one day there will be a correction but for now I don't think we are seeing any signs of that. The most current development is the news headline coming out of China regarding the Chinese property giant #evergrande   I will be paying closer attention to this developing story because it's related to global real estate. The company's share price has dropped over 80% from it's 52 week highs. Apparently the company is in financial troubles, and it has as much as 3 times debt as the Lehman Brothers did before the whole thing colllapsed. Will this company pull the global markets down? I personally believe that it may cause big ripples in the markets in the next couple of months. 

Campbell River
Slight cooling due to historically low inventory.
Inventory remains extremely tight in the VIREB (Vancouver Island Real Estate Board) area, tracking at a 21-year historical low. Active listings of single-family homes and row/townhouses dropped by 51 per cent from July 2020. In the condo apartment category, inventory decreased by 60 per cent from one year ago. Based on the demand VIREB (Vancouver Island Real Estate Board) is seeing, there is no doubt that sales would be higher if there were sufficient inventory.

In Campbell River, the benchmark price of a single-family home hit $639,100.

The British Columbia Real Estate Association (BCREA) forecasts that market conditions may begin to even out somewhat by the end of the year. However, it would take approximately 2,500 new listings in the VIREB area to create an actual balanced market if activity continues at this pace. The Vancouver Island Real Estate Board (VIREB) in August saw sales of 450 single family detached properties compared to 531 in June.

Quadra Island
In the month of August we saw two listings “sold”, two were “pending” and three “new” listings. The lowest price was a 10acre empty lot that sold for just under $400,000. The highest Sold price was an Ocean front property in Drew Harbour that sold for $860,000

Cortes Island
August showed some activity on beautiful Cortes Island as well, with one sold listing, one pending and two new listings. The only sold listing was a 10acre lot with buildings that sold over $800,000.

Calgary

Market continues shift toward more balanced conditions after torrid start to the year.

“Sales have far exceeded expectations throughout most of the pandemic, driven mostly by demand for detached homes. At the same time, supply could not keep pace and conditions shifted to favour the seller, something that has not happened in over six years,” said CREB® chief economist Ann-Marie Lurie.

Detached Homes prices remained relatively stable compared with July figures, but were more than 10 per cent higher than levels recorded last year. Price gains continue to vary significantly based on location. Prices have risen across all districts relative to last year, but prices trended down In the City Centre, North West, West and South districts compared to last month. Detached homes benchmark price was $538,700

The semi-detached homes benchmark price was $430,000. Despite strong price gains across all districts, prices still have not recovered from previous highs in the South, North East and City Centre districts

The row benchmark price in August pushed above $300,000, eight per cent higher than last year.

Apartment benchmark price $253,300 nearly 16 per cent lower than previous highs.

Vancouver

While home buyers have remained active in Metro Vancouver* throughout the summer, the supply of homes for sale has declined steadily since June.

Last month’s sales were 20.4 per cent above the 10-year August sales average.

“August was busier than expected, and listings activity isn’t keeping up with the pace of demand. This is leaving the market under supplied.” said Keith Stewart, REBGV economist.

The benchmark price for a detached home is $1,807,100. This represents a 20.4 per cent increase from August 2020

The benchmark price of an apartment property is $735,100. This represents a 7.6 per cent increase from August 2020

The benchmark price of an attached home is $952,600. This represents a 16.5 per cent increase from August 2020

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

#quadrarealty #realestatestats #romankrzaczek #campbellriver #cortesisland #quadraisland

When is the best time to buy Real Estate?

Many of you have heard the way-too-often overused cliché “LOCATION, LOCATION, LOCATION”.

I believe “TIMING, TIMING, TIMING” is much more important for any investment and very strongly in Real Estate.

Yes, you can find a great location but if your timing is off, then maybe you’re not getting the best deal. What constitutes a “good deal” depends on individual perception of value received. Most investors will calculate what a property is worth by the amount of money they can rent it out for and costs to run the property such as maintenance, insurance, taxes and vacancy rate.

When someone is buying a property where they want to live sometimes these basic principles go out the window. You get excited about the property and you’ll do whatever it takes to get it. I believe in the power of attraction and how important it is to dream big, but I also understand that home ownership can come with unexpected costs and as a buyer you must consider them.

Based on statistical patterns best time of the year to buy a home is in January. Typically, there are not many buyers actively looking to buy a home. I want to emphasize “typically”, because the health crisis has caused some abnormalities in the usual statistical patters. This year in January for example we saw a huge surge in sales. A lot of listings available in January are homes that didn’t sell before Christmas and the sellers might be more motivated and flexible with the price.

February onward usually sees more active listings before the spring market madness starts. The logic behind buying a home during the spring is to get possession during the summer months when kids are on summer vacation.

Spring markets are busiest, most competitive and most expensive time to buy. It’s also easier for sellers to make their home look more presentable; with curb appeal and more natural light outside some homes are just more appealing.

Prices normally peak in June and July when the demand is the most active, with lots of active listings and lots of buyers. As the school year approaches, in August and September, the number of active listings is reduced.

Into the winter months there is a higher probability of prices dropping because not many buyers are looking. In a normal year December is very slow for sales and in my opinion it’s the best time to be a buyer.

Buy a home when demand is low. If at all possible, buying a home in a “buyer’s market” is your best strategy. Prices are low and there are lots of homes for sale. 

A “seller’s market” is the opposite, where the inventory is low but the demand is high. This is the current market with multiple offers being so prevalent and the skyrocketing prices, it’s very frustrating to be a buyer.

Every person has a different situation, finances and circumstances, that’s why timing the market could proof to be a difficult task. During the most disruptive times there are people that make enough money to go to space for a few minutes while others lose everything. It’s a matter of timing and planning ahead of time.

Planning to purchase a home? I would love to help you, starting with getting you connected with a financial planner and a mortgage broker. Take your time, plan, prepare your finances and don’t allow your emotions to control you. Hire me and I’ll guide you through the process.

If you have any suggestions or feedback…or have any topics you would like me to cover, please let me know. I would love to hear from you.

Roman Krzaczek Realtor
Quadrarealty.ca
250-285-2141

10 Things to be done to your homes before fall starts

I can’t believe the summer is nearing the end. Although I always enjoy the hot summer days a bit of rain would be welcome even by sun worshipers like myself. In a couple of months, I will surely regret these words but in the mean time I like to make sure my home is ready for the rainy season. I would like to share with you some tips on what is important before the rains come to avoid unpleasant surprises. Perhaps they will help you slowly start mentally preparing for the change of season.

Gutters
We are all used to them working properly and draining lots of water. Over the years however most people forget about checking them for damage or just a simple cleanup. When gutters are clogged, water can seep through into the house and cause major damage. A simple cleanup and a visual inspection can save you a lot of grief and possibly a lot of money.

Roof
Inspection of the roof is much easier to be done in the summer months before the rains start. If there’s any repairs needed to be done now is probably the best time.

Windows and doors
Check the exterior of your windows and doors. They may need re-calking.

Insulation
Take a look in your attic if there’s any holes made by critters. Sometimes squirrels or birds get inside your attic and build nests out of your existing insulation. Inspect and seal any possible points of entrance.

Chimney and wood stove.
Now would be a good time to inspect your wood stove, clean it out and do any repairs if necessary.

Fix any cracks in your driveway.
If you have a concrete driveway and it has cracks in it, this is the best time to take care of that. When winter comes it will be very difficult to get the right conditions to fix it.

Get your composter ready.
This is a big one for the gardeners like myself. There will be a lot of “greens” and soon enough “browns”. I like to make sure I have enough space for all that goodness.

Test winter equipment
Luckily we didn’t have much snow last year but it’s always a good idea to check your snow blower if it needs any repairs or maintenance.

Change your furnace filters
Another thing in your house that might be costing you more money than it should be. If your filters are clogged, it's harder to keep your home at the temperature you want it to be which will increase your heating bills. Clean these filters monthly, not just before the fall, for optimal performance.

Last but not least Change your batteries. Carbon Monoxide and smoke detectors are very important devices that should work properly.

This might look like a long list but there is still a lot of time. If you are a procrastinator or are busy with other more important projects this could be a good to-do check list before September ends.

If you have any suggestions or feedback…or have any topics you would like me to cover, please let me know. I would love to hear from you.

Roman Krzaczek Realtor
Quadrarealty.ca
250-285-2141

July in Real Estate:

Busy long weekend came to an end and the sun keeps smiling. I can’t believe what I’m about to say… but I miss the rain (for my garden). My garden is feeling the stress of super hot sun but I’m still loving the heat and enjoying the time spent at the lakes.

July was a busy month across the board, maybe not as busy as we have seen recently but that’s probably due to the stress test changes and also summer vacations. A lot of people are taking some time off and enjoying the summer.

Campbell River

The Vancouver Island Real Estate Board reports that;

“Inventory remains extremely tight in the VIREB area, tracking at a 21-year historical low. Active listings of single-family homes and row/townhouses dropped by 51 per cent from July 2020. In the condo apartment category, inventory decreased by 60 per cent from one year ago. Based on the demand VIREB is seeing, there is no doubt that sales would be higher if there were sufficient inventory.”

VIREB’s heated housing market continues to impact prices, which continue to increase throughout the board area.

The benchmark price of a single family home in Campbell River area is 639,100 up from $588,800 just 3 months ago.

Apartments in Campbell River area benchmark closed the $336,300 mark and Townhouses $465,700.

“Unless demand drops significantly or more housing supply comes online through new construction, the needle for VIREB’s inventory situation will not move by much,” states Mackay. “BCREA, VIREB, and other real estate boards continue advocating with policymakers at the provincial and regional levels to speed up the development process so that municipalities can expand supply more quickly to meet demand.”

In the month of July we saw:

Quadra Island had four new listings, and five pending sale (received offers and are waiting for completion)

Cortes Island saw one pending, one cancelled and two new listings.

Seems like a very busy month in such a small market.

Calgary

Price growth slows as supply to demand balance improves.

July sales totaled 2,319 units, which is well above long-term averages and the best July on record. The pace of sales growth has eased over the past few months, but so too has the pace of new listings growth. This has helped prevent any further monthly gains in inventory levels, and while overall supply remains slightly higher than last July, it’s mostly due to gains in apartment and row product.

The benchmark price of a detached home in the city of Calgary is $539,900, apartments: $254,100, semi-detached: $428,400 and row houses: $299,600.

Vancouver

Steady sales, reduced listings and virtually unchanged home prices

“Moderation was the name of the game in July,” said REBGV’s economist Keith Stewart. “Home sales and listings fell in line with typical seasonal patterns as summer got going in earnest in July. On top of moderating market activity, price growth has leveled off in most areas and home types.”

“Low housing supply remains a fundamental factor in Metro Vancouver’s housing market,” Stewart said. "Home sales remain above average and we’re starting to see price increases relent as well. Going forward, the supply of homes for sale will be among the most critical factors to watch. This will determine the next direction for house price trends."

The benchmark price for a detached home is $1,801,100. This represents a 21 per cent increase from July 2020 and is unchanged from June 2021.

The benchmark price of an apartment property is $736,900. This represents an 8.4 per cent increase from July 2020 and a 0.1 per cent decrease compared to June 2021.

The benchmark price of an attached home is $949,400. This represents a 16.7 per cent increase from July 2020 and a 0.3 per cent increase compared to June 2021.

TORONTO

JULY NUMBERS SHOW STRONG DEMAND CONTINUES FOR HOME OWNERSHIP IN GTA

“Demand for ownership housing has remained strong despite a pandemic-related lull in population growth. Of specific note is the condominium apartment market, which has seen a marked turn-around in 2021 with sales up compared to last year. First-time buyers, many of whom were slower to benefit from the initial recovery phase, remain very active in the market place,” said TRREB President Kevin Crigger.

“There is a huge backlog of people seeking citizenship or permanent resident status in Canada. A large share of these newcomers will ultimately choose to call the GTA home. This means ownership and rental market conditions will remain tight with upward pressure on prices for the foreseeable future. Policy makers at all levels must pursue a coordinated effort to bring on a greater diversity of supply in major metropolitan areas,” said TRREB CEO John DiMichele.

Average Price of a detached home in area (416) is $1,695,541, semi-detached: 1,285,347; Townhouses: $926,437; and the average price for a condo: $700,061

It seems that demand across the country continues but maybe just at a slower pace. What would cause such a slow down? Most likely in my opinion the biggest factor behind this trend is the Mortgage stress test that has been recently introduced. The government decided to step in and cool down the overheating real estate market. One of the tools that can be used is the amount of credit that consumers can access. To me, based on the current market conditions statistics there’s a clear co-relation between the stress test and the slow-down. Another big factor that I have also witnessed in the daily life of a realtor is that some buyers are just tired and put the whole idea of buying a home on hold for now. Both buyers and sellers realize that we’ve been stuck at home for too long and might as well just enjoy the summer months and spend time traveling and spending it with your family and close friends. I wonder what will happen with the markets when the new lockdown happens. It appears that it’s just a matter of time before new measures are introduced to control the public. I understand the severity of the health crisis but I don’t always trust what the media feeds us. I would rather enjoy my garden and focus on my family.

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

June in Real Estate:

Craziest thing happened: a client of mine wanted to invest in Bitcoin. The bank loaned him $320,000 of his $400,000 purchase; he just had to come up with the $80,000, and then he owned $400,000 worth of Bitcoin! Can you believe they loaned him the money at 2.75% interest?! Crazy! His monthly payment on that loan with fees was about $1600, but then he rented the Bitcoin out to people for $2,400/mo, and made $800 each month and still got to keep his Bitcoin!! Even though he didn't own it free and clear, he was still able to charge other people to use his Bitcoin every month! 

At tax time, he was able to write off any interest he paid on his taxes, and depreciate his asset on his taxes to wipe out any gains, and he even got a 100% guarantee that there will be a demand for his asset as long as he owns it!!

Can you believe that; an asset that goes up in value AND that allows you to cashflow while you hold it??

Oh wait, I misunderstood his story. That wasn't Bitcoin, it was Real Estate... 

You can’t do this with any other asset class. Real Estate rules!

CAMPBELL RIVER

The Vancouver Island Real Estate Board’s latest report indicates that “inventory is rising slightly, which opens up a few more opportunities for buyers, but it is still historically tight on Vancouver Island. Although active listings of single-family homes dropped by two per cent from May, condo apartment and row/townhouse inventory rose by 16 and 23 per cent, respectively. The British Columbia Real Estate Association (BCREA) forecasts that market conditions may begin to even out somewhat by the end of the year. However, it would take approximately 2,500 new listings in the VIREB area to create an actual balanced market if activity continues at this pace. More inventory is certainly good news for buyers, even if the increases are slight,” says 2021 VIREB president Ian Mackay. “We’re also relieved to see a few more conditional offers again, which means the frenzied fear-of-missing-out mentality is tempering a bit.”

In Campbell River, the benchmark price of a single-family home hit $627,600 in June, up by 29 per cent from the previous year.

This morning- July 05, as I write this article, I checked the MLS to see what’s happening locally (as I do every single day). I’m noticing lately more and more price reductions on listings in our area. This could be an indication of the market finding its new normal. The price decreases are minor however and are usually used to refresh the listings and get more buyers’ attention.

METRO VANCOUVER

According to the Real Estate Board of Greater Vancouver monthly report for June,
Metro Vancouver’s housing market sets a steady, calmer pace to begin the summer season.
“Metro Vancouver’s housing market continues to experience strong seller’s market conditions, although the intensity of demand has eased from what we saw throughout most of the spring,” Keith Stewart, REBGV economist said. “The past two months have shown a market that’s shifting toward more historically typical conditions.” This is making multiple offers less common, allowing subjects to be seen on offers more frequently again, and is making new price records less likely.”

Sales of detached homes in June 2021 reached 1,262, a 45.7 per cent increase from the 866 detached sales recorded in June 2020. The benchmark price for detached properties is $1,801,100. This represents a 22 per cent increase from June 2020 and is virtually unchanged from May 2021.

CALGARY

Calgary’s housing market is showing few signs of letting up, as sales reached 2,915 units in June – a record high for the month. “It is taking time for supply to catch up with the demand in the market,” said CREB® chief economist Ann-Marie Lurie.

“Through the early spring market, many buyers did not have a lot of choice, but the recent improvements in supply are providing more options for those purchasers and supporting the strong sales we continue to see in June. At the same time, gains in inventory are taking some pressure off the market as it starts to trend towards more balanced conditions.”

The unadjusted detached benchmark price totalled $537,200 in June, nearly one per cent higher than last month and 13 per cent higher than last year’s levels.

TORONTO

The Toronto Regional Real Estate Board hasn’t posted their monthly report yet for some reason so I can’t provide you with accurate information but from what I’m reading and talking to agents in the region the same trend is happening there as well. In fact, the market slowdown has started in Toronto 3 months ago and it’s been gradually showing the same across the country.

Why is the market cooling? In my opinion, it is most likely the fact that the economy and travelling is opening up again and a lot of people don’t want to spend time and money on moving. A lot of people will choose to enjoy a trip to places like Quadra Island and Cortes Island to enjoy the tranquil nature and… no traffic (except the ferry traffic). I feel blessed and fortunate to live here during these difficult times. It has given me a renewed perspective on life and the appreciation for the little things in life. I appreciate all the tourists that are coming to visit our “rock” and support our small businesses. It is truly helping our community and I’m sure I’m not the only one thinking that. If you are a visitor here to our beautiful Quadra Island- Thank you! We appreciate YOU.

If you are interested in information about real estate in the area, contact me directly at home @ 250-285-2141. I network with lot of agents across the country and in the USA. I can help you to connect with great agents in your area and make your move easier. Visit my website for lots of interesting resources: https://quadrarealty.ca/

Enjoy the sun everyone!

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

for more articles visit 

the "Discovery Islander" local paper where I write an article every two weeks. 
http://www.discoveryislands.ca/news/

Why hiring a REALTOR will make your life easier.

I believe in education and sharing information freely for the benefit of the public. A lot of people seem confused or just don’t understand what we actually do and I would like to shed some light on the topic.

What do real estate agents actually do?

We write contracts, negotiate a price and terms for our clients, advise/ give opinion, we constantly educate ourselves and our clients. We spend nights worrying and re-reading contracts, constantly anticipating what could go wrong and how to protect our clients if it does. We do a lot of free work and are the last ones in a transaction to be paid. The assumptions of big egos, big paycheques and fancy cars often take the centre stage; however, there are a lot of activities happening behind the scenes the public doesn’t see.

Our license is issued by the province of BC titled “Real Estate trading services”. The license needs to be renewed every 2 years upon completion of several mandatory Professional Development courses, be in good standing (no criminal record) and of course pay the fee.

Many people will be surprised, even some agents, that being a real estate agent requires much less sales than most people assume. As agents, we owe our clients a Fiduciary Duty which means that legally we must take our client’s interest as the highest priority, even if that means a loss of our own earnings. When you go to buy a car for example, the sales person owes you NO duty to protect your interest. The sales person will simply match your needs with their inventory.

When you hire an agent, the agent is working for you to make sure you can buy or sell your property in a safe and legal way and that you know as much about the property as possible.

There are 4 basic duties Realtors owe to the public:

Loyalty- a realtor’s duty to their client is to be loyal to them and avoid conflict of interest. If your listing agent tells you he/she already has clients to buy your house, it may sound enticing but it’s a big red flag. You have to wonder who the agent works for. Are they working for you to get the best deal or the buyer? The agent is supposed to be working only for your benefit.

Full Disclosure- your realtor is supposed to always tell you EVERYTHING that he/she knows about the transaction, the property and the market.

Avoid Conflict of Interest- this can be very tricky especially in a small community when an agent knows both the seller and the buyer. The question is always the same- who is the agent working for. Recent rule changes allow agents to represent only one party to the deal. It is easy to get carried away as we naturally want to help people. However, when I am selling a property for a client and a buyer calls me to ask if I can show the property, I will advise them to arrange the showing with their own realtor and I will make sure they understand who I represent OR do what my client advises.

Confidentiality- When we represent a seller or a buyer, same rule applies. We cannot share information about our client’s motivation or anything private unless our client allows us to do so in writing. Even after the transaction is complete, private information should remain confidential.

In our industry there is now more than ever before more emphasis on ethics and protocols to protect the public from predatory behaviours of agents. For example, we are not allowed to ask you any personal questions until we give you 2 forms called “Disclosure of Representation” and “Disclosure of Privacy”. It makes it awkward and unnatural as a conversation starter but in order for us to be fully compliant with the rules we have to do it that way. Both of these forms basically inform you of all the things I have just written in this article. 

Any agent these days needs to be also connected and fluent in technology. According to statistics, 90% of buyers find their new home online. The majority of marketing of your home is done online and virtually all the due-diligence is done online as well.
When hiring an agent, think about how busy the agent is and how much time they will dedicate to you. How many clients is the agent working with right now? Do you want to be the 4^th client or do you deserve to have the full attention of your agent?

Don’t be afraid of your Realtor! Ask us questions, talk to us. Vast majority of agents are good people that very much care about their clients. I obviously can’t speak for all agents out there but I know a lot of agents and they all show a high degree of morals and caring. What attracted me to this industry is that I can help more people with some of the most important investments of their lives and it is an honour to be part of the process.

Quick Market update:

Vancouver is seeing a market shift already. When a listing is priced well it will show fairly quick but the average days on market has gone closer to 35 days now. In some cases, sellers receive no offers in the first 2-3 weeks. I was convinced that the hot market would continue into the summer and in some regions it's still the case. Locally in the Campbell River area or the North Island things seem to continue to sizzle. Quadra Island listings are mostly over a $1mil these days. Not much is available for less than a million.

If you’re thinking of selling, NOW is probably the best time. If you have any questions or suggestions, please don’t hesitate to contact me directly at 250-285-2141. I’m here to serve you better.

Roman Krzaczek

SOLD

Such a beautiful home in a great neigbourhood of Whiskey Point Estates. Congratulations to my sellers! Thank you for including me in this chapter of your life. Wishing you all the best!

Sales is as much of an art as it is science and I love both sides of it. The art aspect is being able to use more of your intuition to figure out solutions and the science part is when we ask relevant questions.
What I find very interesting is the study of human behaviour on why we behave in certain ways. When it comes to purchasing just about anything, we fully engage with our emotions. That’s why stock brokers always repeat to stick with your plan, have a sell-stop or stop limit and be disciplined with your strategy for that very reason. It’s nerve-racking to buy a stock you know for sure will go up and watch it go down. If you are a geek like me who loves to analyze numbers, you will appreciate the next bit of this article.

What is the number one reason home buyers are moving farther away from the big cities? It surely can’t be because they want to spend more time in traffic.

This health emergency we are still facing has sure tested my own believes in what is truly important to me and many other people I know. There was a case study done in the US based on 1200 respondents who plan to buy a home within the next 12 months. The study was to analyze the most frequent keyword searches on realtor.com website from January through May 31, 2021. The results indicate the most important home feature for buyers are:

 #1- a quiet location, #2- updated kitchen, #3- garage and large backyard, #4- outdoor living areas, #5- spaces for pets. Additional square footage of flexible space that can be reconfigured for different needs has also risen in importance.

The hyper competitive market has left a lot of buyers re-evaluate their needs as well. Fewer people have searched for short commutes and smaller homes. Seems like people don’t care as much about “remodeled” homes, granite countertops and media rooms. The least searched key words were man caves, pools, guesthouses, in-law suites and new construction. My guess is that most of those are probably driven by the cost of housing.

One common threat that’s clearly visible is that more buyers are looking to relocate to live closer to their families, or even move into the same household together. About one fifth of buyers are seeking to share their homes with members of their extended family.

Numbers don’t lie (if the study is done right and there is no hidden agenda) that’s why it’s a great measuring stick to be able to compare relative items together. I’m not sure if you’re aware but there’s a pretty cool tool online called “google trends”. Just go to this website: https://trends.google.ca/trends/?geo=CA

 I’ve used it for many years to see trends in google search patterns. Everything we do online is recorded and some of that data we can access for free.  If you type in Quadra Island for example you’ll see that most searches on google about Quadra island came from geographical location of British Columbia, second was Alberta and third was Ontario. Most searched topics about Quadra Island was: camping- about 80%; followed by /my favourite/- REAL ESTATE (40%). You can also add search criteria to see how Cortes Island compares with Quadra searches. Same geographical locations are shown in different order #1 BC, #2 Ontario, and #3 Alberta. Unfortunately, not many people are searching Real Estate on Cortes Island.

I hope I didn’t bore you with numbers but when you love what you do for a living like I do, you’ll constantly try to find ways of improving and learning.

If you have any questions or suggestions, please don’t hesitate to contact me directly at 250-285-2141. I’m here to serve you better.

Roman Krzaczek