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PRICES CONTINUE RISING DESPITE MODERATING SALES

Sales of single-family homes in October were 11 per cent higher than in September but dipped by 16 per cent from October 2017.

Last month, 385 single-family homes sold on the Multiple Listing Service® (MLS®) System compared to 347 in September and 458 one year ago. The number of apartments and townhouses changing hands last month dropped by eight and 21 per cent, respectively.

This year’s housing market is behaving as expected, moderating after the record-setting pace set in 2016 and 2017. Government policy-side measures introduced to cool the market, such as the mortgage stress test (Guideline B-20) and higher interest rates, are taking their toll on housing sales throughout the country.

On the positive side, the provincial economy is still doing well, and the British Columbia Real Estate Association expects housing sales to make a modest recovery during the next couple of quarters. Further, Vancouver Island has so far been somewhat immune to the effects of Guideline B-20 because the broad demographic trend in our area includes baby boomers and retirees who do not typically need mortgages.

However, an additional government policy that could reduce that insulating effect is the future speculation tax. Although it currently applies only to Nanaimo and Lantzville, the tax could discourage some potential buyers from relocating to Vancouver Island, particularly those who purchase a home well ahead of retirement.

Despite lower demand, prices in the VIREB area are still rising year over year. However, the board-wide benchmark price of a single-family home did drop slightly from September, and modest month-over-month price reductions on single-family homes, apartments, and townhouses did occur in several zones.

Decreased demand and stabilizing inventory are helping VIREB’s long-term sellers’ market evolve into one that is more balanced. Inventory of single-family homes in October was up slightly from one year ago (1,175 compared to 1,138) but down eight per cent from September. There were 322 active listings of apartments in October, up seven per cent from 2017 while the supply of townhouses rose by 28 per cent year over year. Multiple offers have slowed, and buyers are taking more of a wait-and-see approach, which means some sellers will have to curb their expectations.

“Realistically pricing your home is important in any market, but when fewer buyers are competing for a property, sellers need to be prudent when determining a sale price,” says Don McClintock, 2018 VIREB President. “Overpriced homes take longer to sell, so it’s a good idea to consult a local REALTOR® who can help determine the optimal price for your property.”

The benchmark price of a single-family home board-wide was $508,200 in October, an 11 per cent increase from one year ago. (Benchmark pricing tracks the value of a typical home in the reported area.) In the apartment category, the benchmark price climbed to $313,500, up 16 per cent from last year. The benchmark price of a townhouse hit $411,800 last month, up 13 per cent over October 2017.

Last month, the benchmark price of a single-family home in the Campbell River area hit $408,100, an increase of 14 per cent over October 2017. In the Comox Valley, the benchmark price reached $501,400, up nine per cent from last year. Duncan reported a benchmark price of $475,700, up 12 per cent from October 2017. Nanaimo’s benchmark price rose nine per cent to $548,000 while the Parksville-Qualicum area saw its benchmark price increase by nine per cent to $570,200. The cost of a benchmark single-family home in Port Alberni reached $300,300, up 18 per cent from one year ago.

THE AGENCY CONTINUES STRATEGIC INTERNATIONAL EXPANSION WITH LAUNCH OF TWO NEW OFFICES IN CANADA

Beverly Hills, CA (Sept. 26, 2018)

Beverly Hills-based, billion-dollar real estate brokerage and lifestyle company, The Agency, has announced the opening of two new offices in British Columbia, Canada. The British Columbia team will be led by esteemed industry veterans Jason Binab and Brian Danyliw who join The Agency’s fast-growing network of offices throughout the U.S., Mexico and the Caribbean.

“When Billy Rose and I launched The Agency in 2011, we were just a small handful of agents with the goal of revolutionizing the real estate industry and conducting business with a fresh approach,” said Mauricio Umansky, CEO and Founder of The Agency. “It is with great pride that we have partnered with some of the best in the business to bring this new philosophy to communities across the U.S., and to now have a global presence with six international offices. We look forward to serving British Columbia as we continue our expansion to more target markets.”

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THE AGENCY CONTINUES STRATEGIC INTERNATIONAL EXPANSION WITH LAUNCH OF TWO NEW OFFICES IN CANADA

British Columbia Locales Mark The Fifth and Sixth Overseas Offices For Beverly Hills-Based Firm

Beverly Hills, CA (Sept. 26, 2018)

Beverly Hills-based, billion-dollar real estate brokerage and lifestyle company, The Agency, has announced the opening of two new offices in British Columbia, Canada. The British Columbia team will be led by esteemed industry veterans Jason Binab and Brian Danyliw who join The Agency’s fast-growing network of offices throughout the U.S., Mexico and the Caribbean.

“When Billy Rose and I launched The Agency in 2011, we were just a small handful of agents with the goal of revolutionizing the real estate industry and conducting business with a fresh approach,” said Mauricio Umansky, CEO and Founder of The Agency. “It is with great pride that we have partnered with some of the best in the business to bring this new philosophy to communities across the U.S., and to now have a global presence with six international offices. We look forward to serving British Columbia as we continue our expansion to more target markets.”

Binab has sold more than $800 million in real estate during his 13-year career in the industry and is consistently ranked among the top agents in Canada. He has sold more real estate than any other agent in Victoria (based on volume of sales from VREB MLS data since 2005) and in 2016 and 2017, was named the number one Realtor in Victoria (based on volume of sales from VREB MLS data). Binab’s accolades range from being the leader of the number one team in Victoria and on Vancouver Island to the number one team in North America and number two agent on a global scale out of more than 10,000 Realtors (at his previous company). He has also been voted in the top 200 agents in Canada as well as the top three agents in Victoria based on customer satisfaction surveys. No stranger to Hollywood, Binab previously served as the host of Design District, and has appeared on the international real estate program currently airing on Netflix, What’s For Sale With a View. Additionally, he created a YouTube Series entitled Rides With a Realtor, which combines his love of exotic cars with luxury real estate., Binab services the areas of Oak Bay, Victoria, Saanich East Cadboro Bay, Ten Mile Point and Queenswood, in addition to waterfront properties.

“Brian and I had been looking for a real estate company that not only offered a beautiful brand, but one that understood connectivity and culture,” Binab said. “After meeting with Mauricio and Billy, we knew we had found the right partners, they truly understand the power of branding and marketing.”

Danyliw has closed more than $140 million throughout his career in the real estate industry, has achieved record prices for clients and is continuously involved in marquee transactions in the region. In 2015, Danyliw recorded the highest sale price in world-renowned Tofino on Vancouver Island; a record that still stands today*. More recently, Danyliw, assisted clients in acquiring a highly coveted 66-acre Gulf Island known as South Secretary Island. He has earned prestigious recognition as leading the top producing office for Vancouver Island in 2015 and named the number four real estate advisor by GCI (at previous company) the same year. Danyliw is a skilled and committed real estate professional who brings a lifetime of Vancouver Island knowledge to his profession with an impressive resume and deep knowledge of all facets of complex transactions, in addition to a strong background in international marketing.
*Source: Vancouver Island Real Estate Board

“The Agency’s commitment to technology and its brand equity in the industry is undeniable,” said Danyliw. “I am thrilled to join the firm alongside Jason and usher in this new wave of real estate business to our home country.”
“Jason and Brian have extensive experience as well as the passion and drive to lead The Agency’s Canadian team to great success,” said Billy Rose, President and Co-Founder of The Agency. “We look forward to increasing our reach in Canada in the near future as we seek to open new locations across the U.S. and beyond.”
The British Columbia offices are located at 97 Commercial Avenue, Nanaimo, BC and 105-1090 Johnson Street, Victoria, BC,. The Johnson Street location will serve as a temporary office as a permanent home is identified.

The Agency
The Agency is a full-service, luxury real estate brokerage and lifestyle company representing clients in a spectrum of classes, including residential, new development, resort real estate,
residential leasing and luxury vacation rentals. Since its inception in 2011, The Agency has modernized and advanced the real estate industry by fostering a culture of partnership in which
all clients and listings are represented in a collaborative environment. Shunning the traditional brokerage model, agents share knowledge, spheres of influence, contacts and expertise, ensuring clients better representation and a true competitive edge. The Agency has
closed more than $12 billion in real estate transactions since its inception and has more than 450 agents across offices in Beverly Hills, Brentwood, Calabasas, Danville, DTLA, Los Cabos, Malibu, Nanaimo, BC, Noe Valley, Venice, Orange County, Pacific Palisades, Palm Springs, Pasadena, Palm Desert, Park City, Park City, Scottsdale, Sherman Oaks, Todos Santos, Turks and Caicos, Punta de Mita, Palo Alto and Victoria, BC. The Agency has a full-service creative department, The Agency Creates, which supports agents and new development clients with marketing and public relations efforts. The Agency assists developers in all aspects of a development life-cycle via The Agency Development Group.

VANCOUVER ISLAND REAL ESTATE BOARD’S MARKET UPDATE

Long-Running Sellers’ Market Moving Towards Balanced Conditions

 

NANAIMO, BC – October 2, 2018

Sales of single-family homes in September dropped by 32 per cent from one year ago and 25 per
cent from August 2018.

Last month, 348 single-family homes sold on the Multiple Listing Service® (MLS®) System compared to 467 in
August and 511 one year ago. The number of apartments and townhouses changing hands last month dropped by
26 per cent and 41 per cent year over year, respectively.

Inventory of single-family homes in September rose slightly, up four per cent from last year. Active listings of
apartments dipped by six per cent year over year while townhouse inventory posted a modest increase, up by
three per cent over September 2017.

“We attribute the weaker sales throughout British Columbia to a decrease in demand rather than oversupply,”
says Cameron Muir, Chief Economist, British Columbia Real Estate Association (BCREA). “The mortgage stress test
and higher interest rates are taking their toll on housing sales throughout the country.”

On the positive side, the provincial economy is still doing well, and BCREA anticipates that housing sales will make
a modest recovery during the next couple of quarters, albeit not to the levels seen in 2016 and 2017. Further,
Vancouver Island is somewhat immune to the effects of Guideline B-20 because the broad demographic trend
continues to include baby boomers and retirees who typically do not need mortgages.

That said, VIREB’s long-term sellers’ market appears to be moving towards more balanced conditions, says Don
McClintock, 2018 VIREB President.

“Multiple offers have certainly slowed, and buyers are taking more of a wait-and-see approach, which is a good
thing,” says McClintock. “Sellers need to be realistic when listing their home, which is why it’s important to consult
with a local REALTOR® who can help determine the optimal price for your property.”

Regarding prices, the Home Price Index (HPI) recorded modest price reductions month over month for singlefamily
homes in Campbell River and the Comox Valley, but year over year, prices continue to rise board-wide.
The benchmark price of a single-family home for the overall board area hit $508,800 in September, a 12 per cent
increase from one year ago. (Benchmark pricing tracks the value of a typical home in the reported area.) In the
apartment category, the benchmark price climbed to $319,600, up 18 per cent from September 2017. The
benchmark price of a townhouse hit $414,300 last month, up 14 per cent over last year.

Last month, the benchmark price of a single-family home in the Campbell River area rose to $402,700, an increase
of 12 per cent over September 2017. In the Comox Valley, the benchmark price reached $495,700, up nine per
cent from last year. Duncan reported a benchmark price of $470,400, up 11 per cent from September 2017.
Nanaimo’s benchmark price rose 10 per cent to $554,000 while the Parksville-Qualicum area saw its benchmark
price increase by 11 per cent to $575,100. The cost of a benchmark home in Port Alberni reached $303,900, up 19
per cent from one year ago.

Is It Still A Seller’s Market?

The Vancouver Island Real Estate Board reported last month, 444 single-family homes sold on the Multiple Listing Service® (MLS®) System
compared to 518 in May and 617 one year ago. The number of apartments changing hands last month dropped by
21 per cent, but in the townhouse category, sales increased by 26 per cent.

Housing demand in the VIREB area has shifted lower in the first half of 2018 as stricter mortgage qualifications for
conventional borrowers and rising interest rates took their toll on household purchasing power and affordability. It
is unclear whether the June slowdown is reflective of seasonal summer market conditions or if demand-side policy
changes are finally beginning to play a larger role in VIREB’s housing market.

Despite lower sales thus far in 2018, lack of inventory continues to tilt the market in favour of sellers and push
prices upwards. The number of single-family homes for sale has been slowly increasing, hitting 1,336 in June, up
only three per cent from May but a significant increase from the 893 properties available in January. The supply of
townhouses rose by 33 per cent from one year ago, but many of the listings behind these modest inventory gains
in both property types are being quickly snapped up by buyers.

In its 2018 Second-Quarter Housing Forecast, the British Columbia Real Estate Association (BCREA) anticipates that
MLS® residential sales in the province will decline by nine per cent to 94,200 units this year from 103,700 in 2017.
“B.C. housing markets have benefited from the provincial economy expanding well above trend growth over the
past four years,” says BCREA chief economist Cameron Muir. “However, economic growth is expected to slow and
reflect the long-term average this year.”

On a local level, BCREA predicts that over the next eight months, VIREB’s long-term sellers’ market will begin
shifting towards more balanced conditions. Further, the pace of price increases will slow if demand keeps
declining, but it is unlikely that prices will drop until additional inventory enters the market by way of new
construction or buyer appetite decreases drastically.

In the meantime, competition for homes – especially in the $300,000 to $500,000 range – is still modus operandi in
the VIREB area, with multiple offers a commonplace occurrence on properties in that price range. Despite buyer
demand, however, homes at most price points still need to be reasonably priced.
“For sellers, properly pricing your home remains an important factor,” says Don McClintock, 2018 VIREB President.
“Buyers are savvy, and overpriced homes take longer to sell.

Connecting with a local REALTOR® is especially crucial in a competitive housing market.
“REALTORS® have specialized knowledge of their communities and can help streamline the buying and selling
process to ensure the best possible outcome for our clients,” says McClintock.

The benchmark price of a single-family home in the VIREB area reached $510,300 in June, a 15 per cent increase
from one year ago. (Benchmark pricing tracks the value of a typical home in the reported area.) The benchmark
price of an apartment last month was $313,300, a slight decrease from May but a 24 per cent increase over last
June. In the townhouse category, the benchmark price hit $405,000, up 18 per cent over June 2017.

Last month, the benchmark price of a single-family home in the Campbell River area climbed to $425,800, an
increase of 22 per cent over June 2017. In the Comox Valley, the benchmark price reached $510,700, up 17 per
cent from last year. Duncan reported a benchmark price of $450,500, up 12 per cent from June 2017. Nanaimo’s
benchmark price rose 11 per cent to $534,300, down slightly from May, while the Parksville-Qualicum area saw its
benchmark price increase by 16 per cent to $575,800. The cost of a benchmark home in Port Alberni reached
$293,800, up 22 per cent from one year ago.

Featuring Brian Danyliw: Owner / Private Office Advisor

Brian is a skilled & committed real estate professional who brings a lifetime of Vancouver Island knowledge to his profession. Motivated, experienced and approachable, his philosophy is to attend to your real estate needs in a relaxed, professional manner, with above average attention to detail.

With over 20 years of real estate experience, his past entrepreneurial accomplishments include owning successful construction and adventure tourism businesses. Through these businesses, as well as his personal outdoor adventures, Brian has developed a level of patience and tenacity which are advantageous when negotiating the complex details of a real estate transaction.

Brian’s international marketing experience, extensive technological expertise and network of dedicated marketing specialists in union with the power of Engel & Völkers’, ensures that your property will gain maximum exposure. Combining his passion for consuming current market information with his first-hand knowledge of the Vancouver Island real estate market, he has developed a comprehensive understanding of the local real estate markets.

Born in Victoria in 1964, his family moved to the Cowichan Valley the following year. With the exception of occasionally taking time out to travel, Brian has lived on the ‘island’ his entire life.

“I was fortunate to realize early on that Vancouver Island is the most beautiful place on earth and I have never really had any desire to relocate. An excellent climate and safe environment, the island provides everything that I, my wife Ann, our two children Jake and Maggy, and our ever-faithful Labrador Retriever ‘Doc’ could ask for to achieve a healthy and fulfilling lifestyle. If you’ve never been to Vancouver Island, I encourage you to come for a visit……you may never leave!”

Listen, formulate a thorough plan, and then execute the plan with efficiency while always taking into account the human element is his doctrine. Brian loves to share in his clients’ excitement and enthusiasm while confidently guiding them to successful outcomes. A high standard of care in a relaxed and professional environment, customer service, complete confidentiality, loyalty, and above all, attention to detail are what you can expect from Brian.