Increasing demand and limited supply have pushed housing prices way up in Vancouver and Victoria

Good homes available for less than $200,000

Vancouver Island housing price hikes restrained compared to Vancouver and Victoria, Port Alberni cheapest place to buy

You’ve undoubtedly heard all about the voracious housing market in metro Vancouver, about how some homes are quickly selling for $1 million over their asking price.

And you’ve probably heard about how this buying frenzy has leaked into Greater Victoria causing its inventory to dry up and its prices to skyrocket.

But have you heard about what all this rabid house-gobbling has done to the prices in Port Alberni? No?

That’s probably because it has done nothing, zilch, nada.

According to the Vancouver Island Real Estate board, the benchmark price for a single-family home on the Pacific side of The Hump in May 2016 remains identical to what it was one year earlier — less than $200,000.

To put it another way, for the price of just one home in Vancouver, you could pick yourself up seven or eight similar homes somewhere near the Alberni canal.

Alberni, followed to a lesser degree by most of its neighbour communities north of the Malahat, has yet to feel the full effect of the recent buying frenzy, meaning some of the most affordable homes in the entire southwest corner of B.C. can be found not far from your front door.

“Well, (Alberni)’s certainly got the cheapest homes,” VIREB president-elect Janice Stromar said. “I actually grew up there and it’s a great place to raise your kids and a great place to retire.”

Although total sales on the Island outside Victoria are climbing at a faster rate — 46 per cent from May 2015 to 2016 — than they have in in either Greater Victoria or Greater Vancouver, that has yet to translate into a corresponding leap in price.

The VIREB, which tracks properties north of Victoria, reports buyers should be able to purchase a typical home for $354,500, a jump of just 9.4 per cent from May of last year. That compares with Greater Vancouver, which reported a benchmark price for detached homes that jumped 37 per cent to a shade over $1.5 million, and Greater Victoria, where the benchmark price for a home in the core region climbed 19 per cent to $706,500.

This comes at a time where Victoria reported a sales increase of 42.4 per cent and Vancouver posted record sales totals for the month of May — 35 per cent higher than its 10-year average.

People talk about Asian and other international buyers pushing the market, but Stromar said that is not necessarily true, at least north of the Malahat. A recently completed 2015 VIREB buyers’ profile showed just two per cent of its buyers came from outside Canada.

Besides, she said, while the market in the big city can influence the local market somewhat, the two do not necessarily directly correspond.

According to Stromar, the bulk of the people sparking the demand from Cowichan north are coming from the usual sources: locals looking for a change and people — largely retirees — migrating to the Island from the Mainland or Alberta.

That said, she has noticed an increase — too small to call a trend — of people escaping the Vancouver market to commute or telecommute from here, as well as a reversal of what had been an outflow of younger workers to Alberta.

In terms of raw numbers, 771 homes changed hands in the VIREB area during the month of May, while 1,289 were sold in the Greater Victoria area.

But the number of available homes remains low throughout the Island. And the laws of supply and demand dictate houses will not remain relatively cheap as long as that situation persists and individual houses continue to get multiple offers.

“The inventory has not been able to keep up with the demand,” she said. “ The demand does not seem to be lessening. I have buyers that I’m taking out every day.”

 

Benchmark price

May 2015 May 2016

Campbell River $278,400 $287,500

Comox Valley $323,800 $360,400

Duncan $297,400 $317,300

Nanaimo $351,700 $389,800

Parksville/QB $365,600 $417,900

Port Alberni $197,300 $197,300

Victoria $593,200 $706,500

— Victoria and Vancouver Island Real Estate Boards

Follow me on Twitter @JohnMcKinleyBP

Just Posted

More buoys allowed for Brentwood Bay

Proposed number rises from 40 to 60

Victoria airport reaches nearly two million passengers in 2017

This year expected to see additional growth

Peninsula speed skating duo aiming for the national stage

Pair opted to train in long track skating this season for the first time

Tent city resident just wants a home

Roving tent city has made its way to Central Saanich

Island Health, service providers meeting to talk about used needles in Victoria

Recent public needle-prick incidents prompt call to reduce number of needles found

Sidney’s Salish Sea aquarium to close for maintenance

First extended closure for the Shaw Centre for the Salish Sea since it opened in 2009

Butchart Gardens is hiring now and paying more

Wages start at $15, job fair Feb. 20

Cash still needed for Stelly’s Cross Path

MLA Olsen wants more specifics first

Injured parachutist wants stolen backpack back

Bag contained important video files of 2017 parachuting incident

Body discovered in burnt out car near Trail

Police report a body was found in the burnt out trunk of a 1999 Honda Civic

VIDEO: B.C. Lions sign defensive back T.J. Lee to contract for upcoming season

The four-year veteran had a team-high four interceptions and 49 tackles last season with B.C.

How an immigrant to Canada helped Donald Trump prove his mental health

Test that cleared Trump was developed by doctor associated with McGill and Sherbrooke universities

Premier touches on multiple topics ahead of Asia trade trip

Housing and childcare are expected to be the focus of the BC NDP’s first budget in February.

Wanted by Greater Victoria Crime Stoppers for the week of Jan. 16

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Most Read