A further drop in home sales on Vancouver Island is being caused primarily by high interest rates, despite significant demand.
The Vancouver Island Real Estate Board says there were 7,297 units sold in 2023. The figure is down from 7,810 in 2022 and further compared to the 11,045 units sold in 2021. The board adds many buyers are opting to wait for a rate cut this year.
Slow unit sales were also emphasized by a slow December with only 151 sales of single-family homes. This is down 23 per cent from last December and down 36 per cent from November.
Sales were not the only thing that dropped. The board says active listings fell to 796 in December. A year ago, there were 895 and there were 1,040 in November.
While the numbers seem to be getting smaller, the board says there are a few changes coming this year that could see shakeups in the market.
“Based on conversations REALTORS are having with clients, there is certainly demand out there, so we’re expecting a fairly busy spring,” said board chair Kelly O’Dwyer.
“However, there are policy changes coming in 2024 that could impact the real estate market, such as new rules surrounding short-term rentals that take effect on May 1.”
The board adds the expansion of speculation tax to Parksville, Qualicum Beach, Courtenay, Comox and Cumberland could also have an impact on the market.
Across the Island, the benchmark price for a single-family home went up five per cent from a year ago hitting $753,000.
In Campbell River, you can expect to see a price tag of at least $653,100 representing a seven per cent increase year-over-year. The Comox Valley also saw a seven per cent increase, putting the benchmark at $820,600.
A four per cent increase was seen in the Cowichan Valley, for a benchmark price of $763,400 and Nanaimo hit $781,900 for a five per cent increase.
Meanwhile, a two per cent increase was seen in the Parksville-Qualicum area for $845,200 and the North Island saw a slight decrease for a benchmark price of $426,300.
