June 2020:
The Victoria market has started to pick up over the last few weeks. Mostly due to the easing of restrictions in our region. Sales and listings are still below 2019 levels, but the market is experiencing a recent surge in activity, and there have been a lot of multiple offer situations arising from the pent-up demand over the last 3 months. Contrary to what the National media is reporting, Victoria is experiencing steady prices, and in some cases, price increases. The next few months will most likely remain strong resulting in a delayed spring market which will carry throughout most of the summer.
Below are the numbers for May, 2020.
Listing Inventory:
There were 2,544 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of May 2020, 15.7 % fewer properties than the total available at the end of May 2019 but a 10.4 % increase from the 2,305 active listings for sale at the end of April 2020. Typically, Greater Victoria would have about 3000 listings at this time. Therefore, this lower number of listings will tilt the market towards a Sellers market if the buyers pool continues to increase due to the current easing of COVID restrictions.
Sales:
A total of 457 properties sold in the Victoria Real Estate Board region this May, 46.1 % fewer than the 848 properties sold in May 2019 but 59.2 % more than the previous month of April 2020. Sales of condominiums were down 55.7 % from May 2019 with 108 units sold. Sales of single-family homes were down 42.9 % from May 2019 with 254 sold. Although the numbers are low, this rebound in May shows that the market confidence is improving, and the numbers should continue to improve over the next few months.
Average Prices:
The Multiple Listing Service® Home Price Index benchmark value for a single-family home in the Victoria Core in May 2019 was $863,000. The benchmark value for the same home in May 2020 increased by 2.6 % to $885,400, 0.1 % more than April’s value of $884,600. The MLS® HPI benchmark value for a condominium in the Victoria Core area in May 2019 was $516,400, while the benchmark value for the same condominium in May 2020 increased by 3.5 % to $534,300, 0.1 % more than the April value of $533,600. These stable prices are indicative of a balanced market. The inventory of homes for sale has decreased proportionately to the decrease in sales, which has left a relatively unchanged supply demand ratio for buyers and sellers, leaving our market prices mostly unchanged throughout the last 3 months. June statistics should help paint the picture of where prices are going, and so far in June, they appear to be on the rise.
In the meantime, let’s hope the great strides our City and Province have made during COVID 19 pandemic continue to help get things back to normal as fast as possible.
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
