The weather has been very hot in Victoria over the last few weeks and the forecast appears to be continued sunshine. This usually results in a slower real estate market, with fewer sales, as most of us are out enjoying the last month of summer before the kids go back to school. Our grand daughter is now 15 months old, so we have been enjoying some great family time with her this summer.
The Victoria real estate market seems to have plateaued this summer as the July numbers resulted in the first small price drop in almost 2 years. Average prices were down about 1%. Not a big drop, but something to watch as listing inventory is still increasing while the number of sales throughout the region are still dropping month by month from a year ago. In fact, July sales were down about 17% from a year ago. This has been a consistent trend each month this year. Listing inventory is still up about 35% from this time in 2017 which is great for buyers, as the market is returning to a more balanced one.
The next 60 to 90 days should provide a better perspective of where the market is heading. It is still my prediction that the overall prices will start to drop a bit further in the coming months. Homes that are not priced sharply will sit longer on the market. Some areas will remain very active, but others will start to slow as inventory builds. Condos, townhouses and single family homes under the $750,000 range are still very busy and will most likely remain quite strong into the fall. Homes above this range need to be marketed well and priced correctly.
Also, the Bank of Canada might be increasing their rates by another .25% in September, so this may further slow the market, which could result in some lower prices and further softening of total sales. This, combined with the ongoing effects of the mortgage stress test effects enacted in December 2018, and the 20% foreign buyers tax implemented in February, along with the uncertainty around the proposed BC government speculation tax this fall, will most likely contribute to a continued slow down in sales throughout the rest of 2019. Buyers are now in a much better position, as they can take their time, do proper research for each home, and not have to worry about competing with other buyers for the same property, unless the home is under priced or in an extremely sought after neighbourhood. This is a sharp reversal from the events over the last 2 years and is a refreshing welcome for home buyers.
In the meantime, have a great rest of the summer, and if you or any of your friends or relatives require any real estate related information or assistance please call or contact me through my website: www.dalesheppard.com. I look forward to hearing from you.
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