Real Estate Prices, Sales Soar

After catching its breath over Christmas, the Vancouver Island real estate market is soaring again, especially south of the Malahat. New home construction is also climbing.

February data released by the Victoria and Vancouver Island Real Estate Boards show the number of units sold up substantially across virtually the whole island, while prices increased to a lesser degree.

In Victoria, the largest category of homes-single family homes-saw the number of units sold jump from 222 to 349, a hike of 57 percent; meanwhile the average price for single homes climbed from $511,192 to $534,101, a four-percent increase. Total sales in this category jumped from $113.5 million to $186.4 million, a sixty-four percent growth.

In the next most significant category, condominiums, there was an increase in units sold from 119 to 208 while prices fell off from $351,000 to $284,000.

VREB President Bev McIvor lauded the numbers as proof of continued confidence in the market and expressed confidence it would continue. She stressed that " over 25 percent of single family homes sold for less than $400,000 and over 44 percent of the condominiums sold for less than $250,000.

Up-island, the average single family home sold for $297,000, a six percent increase from January and 14 percent jump from February 2006. Condominium sales followed the Victoria pattern, with the average price falling off by three percent to $183,000, while the number of units sold increased from 60 in January to 79 last month.

VIREB reported a slight sales decline in terms of units sold only in Alberni. But average prices there climbed by 54 percent over February of last year. In Campbell River the average sales price climbed by six percent over February 2006. Nanaimo's average price was up 14 percent. Parksville and Qualicum beach's prices climbed by 25 percent while Duncan's was up 15 percent.

VIREB president Jennifer Lynch stressed the affordability of homes within VIREB's reach. "With the average sale price in Victoria over $500,000, and Vancouver over $640,000, our area looks pretty good at just under $300,000," she said.

Home starts across Vancouver Island were up 58 percent over February 2006, according to Peggy Prill of the Canada Mortgage and Housing Corporation: 354 homes were started last month. This was a slight increase from January.

Prill noted that more than 2,000 apartment units were under construction in Victoria last month-the biggest number in 30 years. She predicted that a strong economy, will sustain this "robust" pace.