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Historically, supply in the Vancouver Island housing market has struggled to keep up with demand, but this summer has been a real 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 increased by 142%while listings for condos and townhouses increased by 91% and 107% respectively.
This means that for the first time in several years, people looking for a home on Vancouver Island have a few more options to choose from when looking for a home and have had more time to think before making an offer on a property.
This increase in supply has slowed commercial activity, but according to Doug McGowan, Chief Broker at Sotheby’s International Realty Canadaactivity is still relatively high compared to historical figures.
“Sales activity is back to February 2022 levels,” McGowan notes. “Although the market has slowed after an unusually active spring, it is still above COVID-19 levels.”
READ: Victoria Real Estate has come into its own during the pandemic, here’s why
So far, this market downturn has not had a significant impact on prices. In fact, in July 2022, Vancouver Island benchmark prices were up 22% from the same month last year, across all property types.
According to McGowan, one market segment that seems to be thriving amid this current downturn is the luxury market. Sotheby’s International Realty Canada had several ultra-luxury properties listed on Vancouver Island over the past few months, and they attracted considerable interest.
Overall, McGowan says that despite a chill in the spring, it’s been a relatively busy summer.
While other BC markets have been hit hard by rising interest rates, Vancouver Island hasn’t been as impacted – in part because the BC housing market island is partially influenced by vacation home sales and out-of-town buyers.
When asked what he expects for the rest of 2022, McGowan said he expects things to remain relatively stable.
“We’re anticipating a busy fall,” says McGowan. “Fall brings out a slightly different, more local market… November and December are generally slower months. But our early autumns are traditionally busy, and I think this year will live up to what has happened in the past.
This article was produced in partnership with STOREYS Custom Studio.
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