Summer is in full swing! July weather in Victoria is currently sunny, in the high 20’s, and showing no signs of letting up. The real estate market is usually slower in July, which gives us realtors a chance to relax and enjoy some down time with family and friends. I hope you are also enjoying some quality family time.
Not a lot has changed in the Victoria market since my last update. Housing prices are still at record highs throughout the greater Victoria area while sales numbers have continued to drop this year. In fact, June sales were down about 30% from a year ago. This has been a consistent trend each month this year. As a result, listing inventory is starting to rise, with over 2500 homes for sale currently compared to about 1900 at this time last year. That is a whopping 35% increase. This is great for buyers, as the market is returning to a more balanced market.
The next 60 to 90 days should provide a better perspective of where the market is heading. It is my prediction that the overall prices might start to drop a bit in the coming months. Homes that are not priced sharply will sit on the market longer, as the buyers now have more choices of homes to look at. Some areas will remain very active, but others will start to slow as inventory builds. Condos and townhouses and homes under the $700,000 range should remain the most active. Homes listed in the million dollar range and higher will need to be priced right, as there are more listings for sale in this upper range, all competing for fewer buyers.
Also, the Bank of Canada just increased interest rates by another .25%. This, coupled with the 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, which might lead to the eventual easing of prices in the region. Again, this bodes well for buyers that have been sitting on the fence over the last year waiting for the market to settle down, creating a good opportunity for these buyers to get in to the market now.
In the meantime, have a great 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.
Check out all of the Latest Greater Victoria Real Estate Statistics here
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