January 2021:
Welcome to 2021. Let’s hope things improve with the Vaccine rollout this year so we can all start to get back to a normal life. The Victoria real estate market had a very busy year in 2020, with a grand total of 8,497 properties sold over the course of 2020, 17.1 % more than the 7,255 that sold in 2019. The 2020 sales numbers came in close to one thousand sales over the ten-year average of 7,329 properties. However, the overall listing inventory hit a 25 year low this month, which is definitely going to make for an interesting 2021. The market has many more buyers than sellers at the moment, which is already creating high demand for good new inventory, with multiple offers already underway. With interest rates poised to stay low, the net result could be further price increases for single family homes and townhouses, which increased about 6% last year. The condo market was the only sector that remained relatively busy last year but resulted in a 1% drop in average prices from the previous year. It appears that in this new COVID selling environment, Single family homes and townhouses are the preferred choice for most buyers at this time.
Below are the statistics for the month of December 2020.
Listing Inventory:
There were 1,279 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of December 2020, a decrease of 29.5 % compared to the previous month of November and a 34.5 % decrease from the 1,952 active listings for sale at the end of December 2019. This represents the lowest inventory of active listings at month-end in at least the last 25 years. Again, this is resulting in quick sales with homes selling over asking price. Until the inventory of new homes to the market increases significantly, the result will be increased prices and frustrated buyers.
Sales:
A total of 631 properties sold in the Victoria Real Estate Board region this December, 57 % more than the 402 properties sold in December 2019 and a 20.6 % decrease from November 2020. Sales of condominiums were up 61.2 % from December 2019 with 195 units sold. Sales of single family homes increased 58.6 % from December 2019 with 314 sold. If the overall inventory of homes for sale increases this year, then these increased sales numbers should continue throughout 2021. Usually listings do start to hit the market in mid January, but due to the increased COVID restrictions, this may be delayed this year. The month end stats for January will tell the tale in a few weeks. Until then, sales will be slower this month with the lack of homes for buyers to purchase.
Average Prices:
The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in December 2019 was $857,200. The benchmark value for the same home in December 2020 increased by 6.8 % to $915,100, slightly more than November’s value of $903,100. The MLS® HPI benchmark value for a condominium in the Victoria Core area in December 2019 was $520,100, while the benchmark value for the same condominium in December 2020 decreased by 0.9 % to $515,600, slightly less than the November value of $516,600. To restate my views above, the lack of inventory may result in higher average sales prices in 2021. Interest rates will remain at historic lows this year, and buyers from outside our province continue to choose Victoria as their preferred destination to move to as Victoria has maintained a pretty good track record throughout COVID over the last year. If this continues, we will also attract buyers from outside Canada as once the restrictions are lifted, which should keep our market very hot for the coming years.
If you or any of your family or friends require any real estate related information, feel free to contact Dale at 250-744-0844, or email him through his website: www.dalesheppard.com
