JANUARY 3, 2024
LACKLUSTRE DECEMBER CLOSES OUT 2023
NANAIMO, BC – The Vancouver Island Real Estate Board (VIREB) recorded 7,297 unit sales in 2023
compared to 11,045 in 2021 and 7,810 in 2022. High interest rates are primarily to blame for the
weaker sales, as there was significant demand, but many buyers opted to wait for an anticipated
2024 rate cut.
Last month, there were 151 sales of single-family homes in the VIREB area, down 23 per cent from
last December and 36 per cent from November. Sales of condo apartments in December came in
at 39, increasing by 11 per cent year over year but down 30 per cent from November. In the row/
townhouse category, 39 units changed hands last month, an increase of 50 per cent from one year
ago and down 22 per cent from November 2023.
Active listings of single-family homes dropped to 796 in December from 895 one year ago and
1,040 in November. VIREB’s inventory of condo apartments was 257 last month, up from 248 in
December 2022 but down from November’s 285 listings. There were 244 row/townhouses for sale
last month compared to 229 one year ago and 282 in November.
“Based on conversations REALTORS® are having with clients, there is certainly demand out there,
so we’re expecting a fairly busy spring,” says Kelly O’Dwyer, 2023 Chair. “However, there are policy
changes coming in 2024 that could impact the real estate market, such as new rules surrounding
short-term rentals that take effect on May 1.”
Another potentially significant policy change that could impact sales is the B.C. government’s
decision to expand the speculation tax to Parksville, Qualicum Beach, Courtenay, Comox, and
Cumberland. Residents in those communities must declare for the first time in January 2025 based
on how they use their property in 2024.
The board-wide benchmark price (MLS® Home Price Index) of a single-family home was $753,000
in December 2023, up five per cent from one year ago and down one per cent from November. In
the apartment category, the benchmark price was $384,500 last month, a year-over-year increase
of three per cent and a one per cent decrease from November 2023. The benchmark price of a
townhouse last month was $544,200, up two per cent from December 2022 and down two per
cent from November.
In Campbell River, the benchmark price of a single-family home was $653,100 last month, up seven
per cent from the previous year. The Comox Valley’s year-over-year benchmark price rose seven
per cent to $820,600. In the Cowichan Valley, the benchmark price was $763,400, a four per cent
increase from December 2022. Nanaimo’s year-over-year benchmark price rose by five per cent
to $781,900, while the Parksville-Qualicum area saw its benchmark price increase by two per cent
to $845,200. The cost of a benchmark single-family home in Port Alberni was $530,700, up three
per cent from the previous year. For the North Island, the benchmark price of a single-family home
dropped slightly to $426,300. However, prices of single-family homes, condo apartments, and row/
townhouses dipped from November to December in most zones.