Campbell River is on the move and the first quarter MLS figures indicate it’s upwards and onwards.
May saw 56 homes sold, only 4 short of April’s record breaking 60. Which is a big improvement from April 2012 which saw 41 homes sold and May 2012 which saw 43 homes sold.
June’s sales were 37, which continues to be better than June 2012 which saw 33 homes sold. Inventory of single family homes in June 2012 ballooned to 345, compared to 255 in June 2013. That is almost 100 less single family homes for buyers to choose from today. Demand is increasing; supply is shrinking. Out on the field I’m experiencing buyers turning their attention to lots and new construction. Reason being, buyers are struggling to find what they want in the shrinking inventory of existing homes.
For now, prices are stable, however if this supply/demand trend continues the upward pressure will come. It’s already happening in some sectors of the market such as bare land.
Sales of lots doubled in May (14 units) compared to May 2012 (7 units). This growth continued into June as well, seeing 8 lots sold versus the 5 sold in June 2012. The median price of lots trended upwards from $94,000 in May up to $100,000 in June. The cheaper lots have sold, mostly snapped up by local builders in a rush to keep their construction costs down in a local market showing great signs of recovery. KLP Construction is rumoured to have purchased 30 lots in Discovery Plateau which is now sold out for the time being (phase 6 scheduled for release in 2014).
Desolution Land Corp and NVH Homes are snapping up lots like hot cakes in Jubilee Estates (phase 4 is rumoured for release in a matter of weeks). Earlier this year, Ted Maxwell was selling Parkway Estates lots for $85,000 upwards; however in June the minimum price was $118,900. In a nutshell, if you have a spare $25,000 and access to financing, buy a lot today.