The Comox real estate market is nearing the half-way point in 2021. This market has truly been unique mainly because of the lockdowns and restrictions imposed on all of us by the government. History will have much more to say on the latter issues when all of the truth comes out. In the meantime, let’s look at what has recently transpired in our local Comox homes and properties market.
Selection has been greatly diminished in the first half of 2021 because there have been far fewer listings on the local market when compared to a more typical year. This, in turn, has resulted in many more multiple offer situations. While multiple offers are good for sellers, they are bad for buyers because they often result in homes selling for much more than current market value. If the market subsequently turns downward, the value of these home purchases drops even further.
Prices are up in 2021 but as is the case with most local markets they are subject to a number of influences and they may start to correct to more normal levels once the government restrictions are lifted. This moderation in price is a good thing for the entire local market. More listings and pricing that reflects the real market value of homes in the area are both good for this small real estate market. People do not mind paying fair market value for most of the items that they purchase and home should be no exception.
So when did these changes occur? Up until May of 2020, the average single family home sale price was relatively flat. Thereafter, there has been a steady rise in pricing and a very low inventory. The pandemic certainly has played a role in the unnatural manipulation of this market. The average single family detached sale price was$765,ooo in May 2021 and the median sale price was $734,500. Just over 90 homes sold in the Town of Comox between the 1st of January and the end of May 2021. What is more remarkable is the statistic that tells us that the sell price to list price in the town of Comox in May 2021 was almost 102%. The number of multiple offer situations had a lot to do with driving this statistic up above 100%.
What can people do? If you are local and have been thinking of selling your home, get it on the market before the market starts to correct in response to the easing of restrictions. If you are from the mainland, start travelling and come to the island and see what our area has to offer. The town of Comox is a terrific seaside community with charm and allure. It is located adjacent to the nearby City of Courtenay and together the town and city account for about 80% of the real estate sales in the Comox Valley. Let’s all get back to normal folks. The first step is to get back to the frame of mind we all had before the start of 2020 when the government’s heavy hand was felt without providing us the scientific evidence for the decisions that they made. Yes this will also come out in the not too distant future. We all have a role to play in getting society back to BETTER than normal. Let’s do this together. See you on the island and in our beautiful seaside town of Comox.