July 2023 Real Estate Update

Good day, and happy summer to you!!  June has been a pretty active month for real estate, as it traditionally is. The past two weeks has seen some slowing in the market as the spring real estate cycle has shifted into the slower summer market.  With a lot of homes on the market creating more choice for buyers, sharply priced homes are selling.  

There has been an awkward tension this year for home sellers in real estate as generally speaking, homes are selling for less than the assessed value.  As I’m sure you know, BC Assessment is the provincial crown corporation whose mandate, under the Assessment Act, is to assign values to all properties in British Columbia on July 1st each year. BC Assessment produces assessment data to provide tax authorities with a tax base and other information about properties. The assessed value of a property remains fixed for 12 months (until it is assessed once again).

In contrast, the market value of a home is current and can change week-to-week or month-to-month, market value is based on how much someone would be willing to pay for a home at a particular point in time.

Some of the reasons for this shift are due to high interest rates, more homes on the market which creates more choice for buyers, combined with prices having declined this past year when compared to the previous few years of record breaking sales.

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

June Sales Stats for Single Family Homes in the Cowichan Valley

June saw a total of 88 single-family homes sold in the Cowichan Valley, up just over 35% from the 65 that sold in June of last year, and 2 more than the 86 homes sold in the preceding month of May. There were 146 single-family homes listed on the market in June 2023 compared to 153 last year, very little change.  There were 657 sales in our valley over the past 12 months representing a 21% decrease in comparison to the 835 sales in the 12 months ending in June of last year.

Average prices for single-family residential homes in June 2023 were at $807,179, up just 1% from $798,401 in June 2022, and just a bit higher than May’s average of $800,787 as well. The median price of a single-family home in the Cowichan Valley for the 12 months to date ending in June 2023 was $769,000.

In June, the active inventory of single-family homes on the market in the Cowichan Valley was 433. When compared to the 358 homes at the end of June 2022, we have another month offering buyers more choice than last year.

We had a 3.6-month supply of single-family homes on the market last month, while June 2022 had a 3.5-month supply, pretty much the same. The average days to sell a single-family home in June was 31 days, compared to 23 days last June.

Condos & Townhouses

Condominium apartment sales in June saw 15 units sold, up from 9 sales in the previous month of May, and up a couple from the 13 that sold last June. Condo apartments in the valley saw the average price for the 12 months ending in June 2023 at $336,687; equal to the same period as last year.

The inventory of Townhomes on the market saw 25 sales in June, up from the 17 that sold in the month of May, and up considerably from the 13 sold last June. Townhomes in the valley saw the average price for the 12 months to date ending in June at $556,510, down just 5.5% from $589,197 for the same period last year.