March 2023 Real Estate Update

The current market is slowly picking up as we head towards warmer weather.  But one thing is a certainty, when we start seeing daffodils pop up we will start seeing for sale signs popping up too.

I'm happy to discuss our current market with you, please feel free to contact me. Paul

February Sales Stats for Single Family Homes in the Cowichan Valley

February saw a total of 35 single-family homes sold in the Cowichan Valley, down about 43% from the 63 that sold in February of last year, and higher than the 28 homes sold in the preceding month of January. There were 89 single-family homes listed on the market in February 2023 compared to 61 last year, up 25%.  There were 675 sales in our valley over the past 12 months representing a 23% decrease in comparison to the 874 sales in the 12 months ending in February of last year.

Average prices for single-family residential homes in February 2023 were at $761,080, down 10% from $847,646 in February 2022, and up from January’s average of $683,863. The median price of a single-family home in the Cowichan Valley for the 12 months to date ending in February 2023 was $790,000.

In February, the active inventory of single-family homes on the market in the Cowichan Valley saw 188 homes for sale, compared to 43 homes at the end of last February 2022.

We had a 6.3-month supply of single-family homes on the market this February, while February 2022 had a one-month supply. The average days to sell a single-family home in February was 66 days, compared to 20 days last February. The 10-year average is 53.5 days to sell.  

Condos & Townhouses

 Condominium apartment sales in February saw 10 units sold, up from 1 sale in the previous month of January, and down from the 11 that sold last February. Condo apartments in the valley saw the average price for the 12 months ending in February 2022 at $352,889; that's up 14% compared to last year.

The inventory of Townhomes on the market saw 7 sales in February, up two from the 5 that sold in the month of January, and down many from the 14 sold last February. Townhomes in the valley saw the average price for the 12 months to date ending in for January at $622,880, up a considerable 19% from $523,141 for the same period last year.

Canadian Inflation (January 2023) - February 21, 2023

Canadian prices, as measured by the Consumer Price Index (CPI), rose 5.9 per cent on a year-over-year basis in January, a decrease from the 6.3 per cent rate in December. Slower appreciation in prices of cellular services and passenger vehicles contributed to slowing the overall pace of price appreciation. Rising interest rates contributed to an increase in mortgage interest costs, which were up 21.2 per cent year-over-year, the fastest pace since 1982, as Canadians renewed or initiated higher-rate mortgages. In contrast, the Homeowner's Replacement Cost, which tracks home prices, continued to slow, increasing 4.3 per cent year-over-year in January. Month-over-month, on a seasonally-adjusted basis, prices were up 0.3 per cent in January. In BC, consumer prices rose 6.2 per cent year-over-year, down from 6.6 per cent last month.

There continue to be encouraging signs that the bout of rapid price appreciation that began in January of last year is waning. Although gasoline prices were up from last month due to refinery closures, and food prices continue to rise quickly, unclogging supply chains are softening vehicle and durable good prices, pulling down the index. The Bank of Canada's measures of core inflation, which strip out volatile components, ticked downwards for a second month in a row. Although price appreciation may be moderating, it is still well above the Bank of Canada's 2 per cent target, and while the Bank has announced a conditional pause on further rate hikes, they could change course if inflation does not continue to cool.

What Buyers Want to See When They Walk into a Room

When buyers view your property, they’re likely to visit each room and look around. Their imagination is turned on high. Often, within just a few moments in a space, they’ll form an impression — ideally, a positive one!

So, how do you ensure each room shows well? Here’s what buyers want to see:

1. Space. Buyers will often mentally fit their furniture into a room when they see it. So, make sure each room is uncluttered and staged in a way that showcases its spaciousness.

2. Functionality. Buyers want to see the room for what it is. So, if it’s a bedroom, but you’ve turned it into an exercise room, it might become a distraction to buyers. Consider restoring the room to its original purpose.

3. Themselves. Buyers want to imagine the room as part of their home, not yours. They want to see themselves in it. That’s why it’s smart to depersonalize the space as much as possible. For example, replace the family picture on the wall with a landscape print.

Anticipating how buyers will view each room will help you stage your property effectively.