"Comox Valley Real Estate Heads South, Taking A Two-Year Price Plunge Beyond October 2021 Levels"
In this November Market Update:
Real Estate Quote of the month
Comox Valley September 5 yr. home prices
Interest rates
Inflation expectations
Data used for Comox Valley October 2023 pricing
Quote of The Month:
"Location, location, location... unless it's haunted, then it's a deal-breaker." - Unknown
Comox Valley October 5 yr. home prices
In the past three years, we've witnessed noteworthy price hikes, some surging by as much as 25% within a single year. However, this month, the Comox Valley is following a somewhat different path.
It's crucial to recognize that these figures tend to fluctuate, especially in the autumn season, affected by reduced activity and the recurring patterns that unfold month after month and year after year. What sets this year apart is that the decline spans two years, extending beyond the confines of a single month or year. Furthermore, the swiftness of this shift since the previous peak in September is remarkably striking.
In October 2023, the average price of a single-family dwelling (SFD) dropped by 5%, with a sales volume decline of 74.36% compared to October 2022. Back in October 2021, there was a more significant decrease in the average sale price, down by 11%, coupled with an 83% reduction in sales volume.
Please note that the data used for the average price for October does not include acreages or waterfront properties and can be found at the end of this newsletter.
Please be aware that the data used for calculating the average price excludes acreages or waterfront properties. For a detailed breakdown of this data, please refer to the end of this newsletter.
Quarterly topic: Interest rates unchanged for October
The Bank of Canada's recent announcement on October 25th revealed a decision to maintain the current interest rates, citing a revised economic growth forecast and heightened concerns regarding inflation. This move retains the policy rate at 5%, a level unseen in the past two decades. Furthermore, the central bank emphasized its preparedness to entertain additional interest rate hikes if the persisting inflationary pressures persist.
One significant factor that could potentially trigger further interest rate increments is the ongoing depreciation of the Canadian dollar vis-à-vis the US dollar, a development that is currently unfolding as the US upholds its 10-year interest rate at 5.5%. This particular circumstance might compel the Bank of Canada to contemplate rate hikes as a preemptive strategy to counter the escalating threat posed by rising import prices. Such a scenario could potentially exacerbate the existing inflationary concerns within the Canadian economy.
The robust position of the US dollar, bolstered by its elevated interest rates, highlights the critical need for the Bank of Canada to carefully consider strategic adjustments aimed at preserving overall economic stability.
Inflation expectations:
Data used for Comox Valley 5 year average price:
Included: Zone 2, Excluded: ocean front, acreages
Disclaimer:
The content presented in this newsletter is intended for general informational purposes only. Real estate market conditions are dynamic and subject to change, and the data shared herein is based on the best available information at the time of publication.
While I am committed to ensuring the accuracy and reliability of the statistics and market information presented, it is essential to recognize that my analysis is crafted from independent research and may differ from mainstream analyses that rely on distinct data sources. Real estate markets are influenced by a multitude of factors, both internal and external, which may not be fully captured in the provided data.
Readers are strongly encouraged to conduct their own research. I provide this information in good faith, and for those seeking a more personalized and detailed analysis tailored to their specific needs, I am available for individual consultations. Your trust in my dedication to delivering accurate and valuable information about the real estate market is sincerely appreciated.
