Inflation, Market Pricing and Labour Problems

Coping with the Present, Looking to the Future?

• 
• By Nancy Smith
• Qualicum Beach REALTOR®
• Published: Jun 6th, 2021 at 8:05 am

This chart demonstrates the latest 2021 shift in market prices versus number of sales.

The most significant piece of information gleened from this latest chart, demonstrates how significantly sales over $1 million have escalated in the Parksville - Qualicum Beach area.  Only a few years ago, only waterfront homes or mansions breached the $1 million dollar mark.

In one year, sales over $1 million have tripled whereas homes below $600,000 have fallen dramatically, as there is little inventory priced below this level.

For the last 100 years, Buyers have constantly complained that these new prices are not sustainable, but every price level has been topped.  Fifty five years ago, a new three bedroom, full basement home was custom built for $18,000 and five years ago sold for $2.3 million in North Vancouver and was torn down. Apparently the land will soon be developed into a much higher density residential community. In the meantime, sellers took their cheque and moved to Oceanside area, buying a new home for less then $700,000, now priced close to $1 million. 

British Columbia's minimum wage was just lifted to $15.20 per hour, and restaurants can not find staff to work, construction sites are without labourers, and industry output has been drastically reduced due to labour shortages. Many of these problems have been attributed to the Covid-19 pandemic, but if we really research pre-2020, the labour problems preceded the pandemic.

A local handyman recently accepted a small job to finish some concrete slabs, mostly a labourer's job, and was offered $75/hour, which he just could not refuse.

There is definitely a market disconnect, and resolution appears to be painful.