The Victoria real estate market has continued to impress forecasters over the last few months. The overall sales are up about 12% from 2013, and the listing inventory is down about 7%. There are still about 4200 listings on the market for sale, so there is a lot of good choice for buyers. However, the market is slowly shifting towards a balanced market which is great news for buyers and sellers, as the best time to buy and sell is in a market that is stable. There is not much of a rush or panic, and the details can all be covered without missing anything important in the buying process. Once it becomes a sellers market, then the panic buy era begins, and the stress level for all involved goes up 10 fold. We have not seen this since 2008, so it will be back at some point, so in the meantime, if you are buying or selling, enjoy the current market conditions, as they will not last forever. We are not close to a sellers market yet, and are probably a few years away from that scenario materializing. However, there are popular pockets of homes in the Victoria area that are very active, and are leaning towards a sellers market scenario, and we will see more and more of this if the market continues in the current direction.
In the meantime, prices are still flat, and will probably continue to be for another couple of years. Eventually, if the sales continue to increase, and listing inventory drops, then the result will be increased prices. Also, interest rates are remaining at record lows which should also help the market gain momentum in the coming 1 to 2 years. If you shop around, you can find 5 year terms as low as 2.89%. After 6 slow years, this is definitely the brightest outlook I have seen in some time. Consumer confidence in real estate is improving, and will continue to improve, especially if the stock market continues to slide, which usually results in investors looking for other sources of revenue, and real estate is always the best option. The doom and gloom about a bubble bursting does not appear to be relevant in the Victoria market, as we have experienced a gentle soft landing as they call it, with prices dropping a bit each year over the last 4 years. I believe this will not result in any more significant price drops, and if all predictors are correct, we should be at or close to the bottom right now. We will see…
Having said that, the market is still tough on sellers that are not priced correctly. If a property is overpriced, it will not sell. With about 4200 listings for sale at this time, and about 600 sales per month, the statistics are still only about 1 in 7 homes selling per month. This is a far cry from the peak in 2006 and 2007, when about 1 in 3 homes were selling per month.
In the meantime, I am signing off until next time. We have about 2 solid months before the next big holiday season arrives, so it is time to work hard for the next 60 days so we can all enjoy the Christmas holidays and relax with family and loved ones.
Here are a few links to various real estate sources that may be of interest to you:
1. Click on this link and hit “Like” to obtain current postings from my real estate Facebook page: VictoriaBCProperties
2. Click this link for details of my Summer Newsletter: Newsletter
3. For the latest historical statistics from the Victoria Real Estate Board, click here: VREBStatistics
4. Search for listing at my Victoria BC Properties website: DaleSheppard.com
All the best to you and your family throughout the remainder of 2014!
Dale.
