Following the introduction of the new 15% tax on foreign buyers in Metro Vancouver there has been much discussion and speculation on the impact, if any, we were likely to see in Victoria. From my personal observations we have not seen an increase in foreign buyers coming to Greater Victoria. We have seen a decline in the number of inquiries from residents of the lower mainland.
The reality in our marketplace is that we are continuing to experience record sales with upward pressure on prices due to the lack of properties for sale. We have the lowest inventory we’ve had in 20 years with just 2,094 active listings at the end of August 2016 down 43.2% from 3,688 listing at the end of August 2015. There were 883 properties sold in August, up 19.2% from 741 sold in August 2015. That’s just an overall 2.5 month supply of listings, definitely still a strong seller’s market. The benchmark price for single family homes increased 23.6% year over year from $603, 200 to $746,900. Prices have changed at different rates in different areas and property types. Please contact us for specific information relative to your property and neighbourhood.
Another driver in our market is the critical shortage of rental accommodation. Immigration to Greater Victoria increased over the past year driven in part by the downturn in the Alberta economy. Furthermore, much of the rental pool has been converting to more lucrative vacation rental use via AirBnB and other online resources. With the shortage and extreme low vacancy rate, we have witnessed a sharp increase in rental rates, particularly downtown. The vacancy rate from what I can see looks like it might even have fallen below zero to negative vacancy! I think there are more rental accommodation seekers than there are suites available. This is the toughest I’ve ever seen it for the thousands of incoming students looking for housing. The tight rental market and increased rates of return are making investment properties more attractive and contributing to upward pressure on prices.
Our Neal Estate Team continues to exceed all previous sales records. We’ve successfully assisted more than 120 buyers and sellers in the past 120 days! We need properties of all types and price ranges in all areas of Greater Victoria for our many qualified and anxious buyers. If you are considering either now or in the near future please contact us today!
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The Neal Estate Team is your #1 source for all of your Victoria BC real estate needs. Get in touch with us online or by phone at (250) 386-8181 to speak with a Victoria real estate buying or selling expert today. With decades of experience as a top selling Victoria REALTOR® and ranked in top 1% globally with over 4,000 transactions and $1 Billion SOLD, Ron Neal & The Neal Estate Team have the industry experience and market knowledge to help you make smart and informed buying or selling decisions.