June 2024 Real Estate Update

May 2024 in the Cowichan Valley

Statistics for Single Family Dwellings:

May, the Cowichan Valley saw the sale of 83 single-family homes, a slight decrease from 85 sales in May of the previous year, but a notable increase from the 62 homes sold in April. The market listed 144 single-family homes, a marginal decline of about 2% from the 147 homes listed in May 2023. Over the past 12 months, the valley recorded 653 home sales, marking a 3% rise compared to the 633 sales in the previous year. The average selling price over these 12 months showed a modest increase of 3.5%.

The average price for single-family homes in May 2024 was $799,090, which represents a 1% decrease from May 2023's average price of $805,914 and a drop from April’s average of $827,974. The median price for the 12 months ending in May 2024 stood at $780,000.

The active inventory in May was 283 single-family homes, a significant increase from the 197 homes available at the end of May 2023. This 30% rise in inventory is providing buyers with more options and contributing to downward pressure on prices. Although the Bank of Canada has reduced interest rates by 25 basis points, this move is unlikely to significantly impact our local market due to the high number of homes for sale.

The market now has close to a 5-month supply of single-family homes, up from a 3.3-month supply in May 2023. The average time to sell a home in May was 42 days, slightly down from 44 days in the same month last year.
For further details and insights, feel free to contact me!

Kind Regards, Paul

Condos and Townhouse

Condominium apartment sales in May saw 12 units sold, up from 11 sales in the previous month of April, and up from the 8 units that sold last May. Condo apartments in the valley saw the average price for the 12 months ending in May 2024 at $367,600, up 13% for the same period as last year, $325,125.

The inventory of Townhomes on the market saw 21 sales in May, up from the 10 that sold in the month of April, and up from the 17 sold last May, a 24% increase. Townhomes in the valley saw the average price for the 12 months to date ending in May at $576,672, almost the same as the $575,497 for the same period last year.

If you would like to see my current listings, please click here.

The Bank of Canada reduced rates by 25 basis points and it seems that inflation may be easing a bit. The next announcement is scheduled for July 24, 2024.
For more information please click here to visit the Bank of Canada's website.

Here is an article from Clay Jarvis with Nerdwallet about the effect of the rate reduction on mortgages. Some interesting information and thoughts. Click here to visit the article.