On a frequent regular basis I’m asked “How’s the market Ron?” I’m also asked to predict the future! Of course there are many factors that contribute to our market including unpredictable and unforeseen forces that can and do often have sudden impact. The fact is that the current trend is a rising market, after several years of a flat or down market for Greater Victoria (while prices rose in other areas including Vancouver and Calgary). It’s all part of a somewhat predictable cycle. It’s our turn!
Today our market is a bit crazy actually, significantly under supplied with seeming insatiable demand and a critical shortage of listings available. While the market activity is reaching into more rural areas and all property types and price ranges, it varies dramatically with much more intensity in the urban core including Victoria, Saanich and Oak Bay.
Our market is being driven by our strong local economy and demand, plenty of Foreign Investors and Immigrant Wealth, Vancouverites cashing out and downsizing to Victoria, Canadians who invested in US over last few years cashing out and moving money to Island and the normal influx from rest of Canada…because we live in an amazing place! Our mild climate, easy pace of life and natural beauty combine to make Victoria and Vancouver Island one of the best places on earth to live.
The current trend and momentum in this strong “Seller’s Market” is for prices to continue rising for the foreseeable future. My “guess” is double digit growth for 3-5 years…unless we get it all this year!
To put some perspective on that, there were 857 single family homes listed in the Greater Victoria Core between January 1st and March 31st 2016. Of those 857 listings, 577 are sold firm and just 251 of those were remaining for sale as of April 1st.
This shortage is pushing buyers into a frenzy in some areas and price ranges with multiple competing offers. A quick review of those sold indicates an unprecedented more than half of those sold for above the listed price.
Many would be buyers are unable to successfully compete in these circumstances, whether they are dependent on financing that is difficult to preapprove for a price that can’t be supported in advance by an appraisal, have insufficient time to complete other needed due diligence or have a home to be sell before able to commit to buying a new one, essentially locking them down from fear of being homeless or simply won’t pay as much as someone else is prepared to. We do have helpful solutions in many cases, but this is an extra stressful and challenging time.
While it is a challenging time to buy, in my view it seems very likely to get much more expensive with the current momentum,the big spread between Island prices and the lower mainland, strong economy locally, supported by our low dollar and low interest rates. Of course the widespread belief “that prices are rising and will continue to” in itself is what is really pushing the market.
Please contact us for a free real estate consultation. When you’re considering buying, selling or investing, we’re happy to share our expert advice.
Click here for the full Victoria Real Estate Board News Release for March 2016
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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.