The BC Real Estate Association (BCREA) warns that a shortage of homes is being seen in some the most recreational-friendly areas of the province, including Vancouver Island and the south coast.
“An upturn in demand has not been accompanied by a rise in homes listed for sale,” said Cameron Muir, BCREA chief economist. “The supply of homes for sale in the province has fallen 50 per cent over the past five years. The entire southern portion of the province is experiencing a shortage of housing supply.”
On Vancouver Island, the inventory of homes for sale has dropped 36 per cent this year, according to the Vancouver Island Real Estate Board (VIREB).
“Consumers are frustrated,” said Janice Stromar, VIREB president. “Some people who want to sell their homes are afraid to put them on the market for fear of having difficulty finding a new one.”
The Foothills in Lantzville, a new development, hoped to ease some of the frustration by adding 71 residential home sites from its first phase of development to the inventory. At full build-out over 10 to 15 years, the community will add close to 730 homes.
On the first day of sales, however, 60 of the 71 home sites sold for a total of $20 million, with nearly all of the sales to local buyers.
The Foothills covers 1,838 acres as a master-planned community that will include a mixed-used village and 900-acre park, the developers say.
Lantzville is a waterfront town of 3,700 just north of Nanaimo. The Foothills has building sites that range in price from $250,000 to over $500,000 with the majority priced around $300,000.
“We want to tick off all the boxes for any homeowners who have been wanting a place in the Lantzville area but haven’t found the right property from the few options available,” said Allard Ockeloen, chief executive officer, Lone Tree Properties Ltd., a subsidiary of Storm Mountain Developments.
The next phase of Foothills infrastructure is currently being designed and construction is expected to start in early summer, Ockelon said, adding he was not surprised at the first-day near-sellout.
“The land rush is on. There was pent-up demand as development on this land has been talked about for 10 years. We knew the first phase would not stay on the market long,” he said.
