Historically, Vancouver Island’s housing market supply has had difficulty keeping up with demand—but this summer has been quite the anomaly.
In July 2022, Vancouver Island saw an influx of supply across all property types. Compared to July 2021, active listings for single-family homes grew by 142%, while listings for condos and townhomes increased by 91% and 107% respectively.
This means that for the first time in several years, home seekers on Vancouver Island have a few more options to choose from when house hunting, and have had more time to think before making an offer on a property.
This increase in supply has slowed down sales activity, but according to Doug McGowan, Managing Broker at Sotheby’s International Realty Canada, activity is still relatively high compared to historical figures.
“Sales activity is back to February 2022 levels,” remarks McGowan. “While the market has slowed down after an exceptionally active spring, it’s still above COVID-19 levels.”
So far, this market slowdown hasn’t had a significant impact on prices. In fact, in July 2022, benchmark prices for Vancouver Island were up 22% compared to the same month last year, across all property types.
According to McGowan, one segment of the market that seems to be thriving amidst this current slowdown is the luxury market. Sotheby’s International Realty Canada had multiple ultra luxury properties listed in Vancouver Island over the past few months, and they have garnered a significant amount of interest.
Overall, McGowan explains that, despite a cool-down from the spring, it’s been a relatively busy summer.
While other markets across British Columbia have been hard hit by rising interest rates, Vancouver Island hasn’t been as impacted -- in some measure because the Island’s housing market is partially influenced by vacation home sales and out-of-town buyers.
When asked what he’s expecting for the remainder of 2022, McGowan said he’s expecting things to remain relatively steady.
“We’re anticipating a busy fall,” says McGowan. “Fall brings out a slightly different, more local market…November and December are usually slower. But our early falls are traditionally busy, and I think this year will be on par with what’s happened in the past.”
This article was produced in partnership with STOREYS Custom Studio.