Although we spent the last week of October attending a real estate conference in Scottsdale, AZ, both Leslee and I had enough anecdotal evidence that the real estate market back in Victoria was still a busy place, specifically, our phones kept ringing while we were away. Now that we are back in the saddle we’re busy catching up and the calendar has once again changed to the next month — that means it’s time for statistics to be able to accurately compare what’s been happening in the Capital Regional District.
There were 735 unit sales in October 2016, which is one single property more than in October 2015 — that points to a balanced market, something we’ve been anticipating somewhat as recent changes to mortgage lending rules as well as the recent decrease in inventory levels have been working to temper the rapid pace of sales and price growth. That being said, with such low inventory (there were 39% fewer homes for sale at the end of last month versus the same time a year ago) we expect prices to remain stable, if not continue to rise slightly in the coming months. Full details of the press release from The Victoria Real Estate Board can be found at the end of this post. For further details feel free to contact us.
As we are working our way through Autumn we are looking forward to more soup on chilly days and to time spent with family and friends over holidays — although the real estate market is seasonal in nature and we expect things to quiet down somewhat as we get close to the holidays. Many people will find themselves having to make buying or selling decisions in real estate for such life events as promotions, transfers or even to accommodate growing families that like to get together over the holidays. Please call us if you have any questions about real estate in Victoria.
From our family to yours, Happy Remembrance Day and Happy Armistice Day, lest we never forget.
Competitive Housing Market in Victoria Continues as Inventory Remains Low
November 1 2016, Victoria, BC
A total of 735 properties sold in the Victoria Real Estate Board region this October, a single property more than the 734 properties sold in October last year.
Inventory levels remain lower than last year, with 1,938 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of October 2016, 38.9 per cent fewer than the 3,170 active listings at the end of October 2015.
“We continue to see low inventory hindering sales in the local market,” notes Mike Nugent, 2016 President of the Board. “Though our numbers are down from the record setting pace set this summer, the market is still moving quickly and is still very competitive for certain properties. High demand areas like Saanich and Oak Bay continue to see multiple offers and areas in the West Shore are also seeing sales over listed prices. In other areas, prices remain firm because of high demand and extremely limited inventory.”
The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in October 2015 was $608,200. The benchmark value for the same home in October 2016 has increased by 24.1 per cent to $755,000.
“The federal government’s change to mortgage lending rules has also impacted buyers,” adds President Nugent. “Buyers that require mortgage insurance are able to qualify for significantly smaller mortgages than before the rule change and this is further limiting their options in a very restricted market. Some buyers have postponed their search in order to save up more of a down payment so they can work within these new limitations.”
About VREB – Founded in 1921, the Victoria Real Estate Board is a key player in the development of standards and innovative programs to enhance the professionalism of REALTORS®. The Victoria Real Estate Board represents 1,305 local Realtors. If you are thinking about buying or selling a home, connect with your local Realtor for detailed information on the Victoria and area housing market.All Articles More Like This