Around Town: Single-family benchmark price surpasses $500,000 in May
The benchmark price of a single-family home in the Vancouver Island Real Estate Board (VIREB) area broke the $500,000 mark in May, rising to $507,700, a 17 per cent increase from one year ago. Sales of single-family homes were down 17 per cent from last year but posted a month-over-month increase of nine per cent.
Housing demand in the VIREB area shifted lower in the first four months of 2018 as stricter mortgage qualifications for conventional borrowers took their toll on household purchasing power and affordability. Higher interest rates and new provincial taxes may slow demand of purchasing new homes. However, the attractiveness of Vancouver Island to retirees and millennials is expected to mitigate their impact somewhat.
Last month, the benchmark price of a single-family home in the Campbell River area climbed to $417,500, an increase of 20 per cent over May 2017. In the Comox Valley, the benchmark price reached $500,500, up 17 per cent from last year. Duncan reported a benchmark price of $450,700, an increase of 15 per cent compared to May 2017. Nanaimo’s benchmark price rose 14 per cent to $538,500 while the Parksville-Qualicum area saw its benchmark price increase by 17 per cent to $575,000. The cost of a benchmark home in Port Alberni reached $294,900, up 27 per cent from one year ago.
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