The Greater Victoria real estate market has been extremely busy so far in 2016. The average prices are up 10% from a year ago, and the listing inventory is down about 25% from a year ago (3200 down to 2400). Sales increased by 50% this January over last. Interest rates are still at historic lows. Also, more buyers are arriving from overseas, across Canada, Vancouver and the lower Main land. All of these factors should contribute to a robust year, with continued double digit price increases.
How does this effect buyers and sellers? The reality for buyers is that they need to be pre-approved for financing, and they need to be prepared to act immediately if they find a home of interest. If there are other interested buyers, then the multiple offer situation emerges, and this is becoming more and more prevalent every day in the Victoria market, and some outer regions as well. This means that the buyers must be prepared to jump in with both feet, and submit a very good offer if they want any chance of obtaining the desired property. Sellers, on the other hand, are back in the driver seat, and are able to sell more quickly, and for more money than they could during the last 5 years.
The affordability level in Victoria is becoming out of reach for most buyers. The $400,000 price point is becoming the entry level for single family housing in the city, and anything under this price usually requires a lot of work, or is a tear down in some areas. However, this is still a far cry from the entry level down pricing in Vancouver which is usually over $1million, which leaves Victoria a desirable destination, and a good second choice to the mainland. As a result, we have seen the number of lower mainlander’s buying in Victoria double over the last year, and this trend should continue in 2016, as more folks cash out in Vancouver and make a move to the island. This of course, will put additional added upward pressure on prices in the Greater Victoria region. All of this, plus the fact that Victoria is one of the most desired cities to live in Canada, translates into a continued strong year in real estate. Stay tuned for my Spring update in a few months.
Here are a few links to various real estate sources that may be of interest to you:
1. Up-to-date real estate information on my Facebook page: VictoriaBCProperties
2. Latest Website Newsletter: Newsletter
3. Latest historical statistics from the Victoria Real Estate Board: VREBStatistics
4. Search for Victoria Properties at my website: DaleSheppard.com
All the best to you and your family.
Sincerely, Dale
