Over the past 24 months, the average Campbell River single family sale price rose $110,000. From $340,000 to $450,000. More buyers were competing to purchase the dwindling inventory of properties, creating an upward pressure on pricing. Residential sales peaked in 2016, with 77 sales recorded in May 2016 when buyers had 213 single family listings to choose from. 54 sales were recorded in May 2017 when buyers had 138 single family listings to choose from. And 58 sales were recorded in May 2018 when buyers had 97 single family listings to choose from.
As of October 2018, Campbell River reported a mere 73 single family listings for sale. If a hypothetical situation occurred where no further residential listings entered the market, we would run out of inventory in less than two months. For the past 12 months sales were down 14% and the trend of reduced residential sales will continue if inventory remains at the current low levels. It will be a welcome relief, for buyers and local builders, when Parkway Properties releases 35 residential lots for sale in Jubilee Estates later this month. In addition, Couverdon is working hard to prepare 50+ lots in Phase 1 of Jubilee Heights which will most likely be available to purchase early 2019.
Lack of inventory is not the sole factor affecting sales. Decreased sales are also due to i) out of town buyers moving to Campbell River needing to be satisfied with the sale proceeds of their current property. If they can’t sell their house in Vancouver/Victoria then they can't move to Campbell River ii) the number of first time home buyers declining due to the reduction in this demographic group iii) increasing interest rates and iv) the lending regulations ’stress test’ resulting in a tougher mortgage qualification process.
Despite this increase in property values, Campbell River continued to attract buyers because it is still relatively affordable compared to other areas of Vancouver Island. Campbell River’s median sale price in October 2018 was $415,000 compared to Comox $505,000, Qualicum/Parksville $635,000, Alberni $290,000, Nanaimo $525,000 and Duncan $520,000.
Campbell River Fast Facts:
• The average patio home purchased in 2018 was built in 2015, 1,617 sq ft, on a 6,278 sq ft lot, 2 bedrooms, 2 bathrooms and approximately $412,000. 29 patio homes (built 2010 or younger) were purchased in 2018 of which 18 were new construction (5% gst payable), and 11 were resale. Currently there is only 1 patio home listed for sale that is built 2010 or younger. It will also be a welcome relief to buyers when the 30 unit development Eagle Ridge Executive Patio Homes is listed for sale within the next couple of months http://eagle-ridge.ca
• The average new or near new rancher purchased in 2018 was built in 2010, 1,576 sq ft, on a 7,742 sq ft lot, 3 bedrooms, 2 bathrooms and approximately $495,000. 25 ranchers (built 2010 or younger) were purchased in 2018 of which 5 were new construction (5% gst payable), and 20 were resale. Currently there are only 6 ranchers listed for sale that are built 2010 or younger, and none of these active listings are ranchers with a bonus room
• The most recent sale of a rancher with a bonus room was $617,000 plus gst and located at 65 Country Aire Drive which is the Willow Point area. In 2018, 42.6% of Campbell River’s sales occurred in the Willow Point area
• The average new or near new 2-level home purchased in 2018 was built in 2014, 2,584 sq ft, on a 9,088 sq ft lot, 4 bedrooms, 3 bathrooms and approximately $638,000. An ‘ocean view’ 2-level home sells for higher, with an average of approximately $702,000. Typical ocean view addresses include Timberline Drive, Sunderland Road and Mariner Drive. 30 2-level homes (built 2010 or younger) were purchased in 2018 of which 12 were new construction (5% gst payable), and 18 were resale. Currently there are only 9 ‘2-level homes’ listed for sale that are built 2010 or younger of which one has an accepted offer as a result of a multiple offer
• October 2018 there were only 14 lots listed for sale. The median sale price of a lot in Campbell River was $224,900 plus gst, compared to Comox $270,000, Qualicum/Parksville $300,000, Alberni $105,000, Nanaimo $238,500 and Duncan $142,000
• October 2018 there were only 2 townhouses listed for sale with a sell list ratio of 200%. What that means is that for each new listing that entered the market, 2 then sold, thus further reducing the inventory. The median sale price of a townhouse in Campbell River was $325,000, compared to Comox $399,900, Qualicum/Parksville $442,500, Alberni $405,000, Nanaimo $349,900 and Duncan $272,900.
It has been a fairly dry and mild Fall so I hope you got out there and enjoyed the sunshine. I look forward to hearing your news! Reply ‘yes please’ if you would like me to email you the data that accompanies this newsletter. If you are looking to buy, sell, build or want an evaluation on your property, more info on the lots coming up for sale in Jubilee Estates or the patio home development at Eagle Ridge, please don’t hesitate to contact me.