The Victoria real estate market is experiencing a surge that has not been experienced since the start of 2010. We have had a large increase in the number of sales this year, and a definite firming up of pricing. In some areas, there has been an increase in the number of homes selling above their list prices. Also, the inventory of homes for sale is much lower this year than the previous two years, which is helping sellers to obtain a successful sale in a shorter period of time. These factors are resulting in a strong spring market which should continue throughout this year.
The current record low interest rates are another significant factor positively affecting the real estate market. Not only are first time buyers benefitting, but those looking to re-finance or move up or downsize are all able to take advantage of the low monthly payments on a new mortgage. With the Bank of Canada holding firm on their commitment to keep inflation at bay, the result has been a rate hold that is poised to continue through the remainder of this year, with the possibility of a further .25% drop should the oil prices or Canadian dollar change significantly in the direction that will affect the Bank of Canada’s target 2% inflation rate. The end result for consumers is that the banks are not feeling any pressures to increase mortgage rates any time soon, which is good news for the local Victoria real estate market. As of today, some banks are offering fixed 5 year mortgages for 2.59%. These rates are extremely low, so it will be interesting to see how long they last. Most forecasters are predicting well into 2016.
Have prices bottomed out in Victoria, and are we now in for price increases? Time will tell. The significant increase in sales this year, combined with lower listing inventory, will eventually lead to an increase in prices. Some areas are experiencing this now. If the current level of activity continues throughout this year, then yes, I think we will see a higher priced market later this year, or into 2016. That means that the year 2015 might well be the year that everyone wished they had jumped into the real estate market in Victoria. We will see…
In the meantime, here are a few links to various real estate sources that may be of interest to you:
1. Click on this link and hit “Like” to obtain current postings from my real estate Facebook page: VictoriaBCProperties
2. Click this link for my latest Website Newsletter: Newsletter
3. For the latest historical statistics from the Victoria Real Estate Board, click here: VREBStatistics
4. Search for listing at my Victoria BC Properties website: DaleSheppard.com
All the best to you and your family.
Dale.
