The trend we experienced through 2015 has continued as expected into our start to 2016. There are fewer properties for sale and more selling, creating upwards pressure on prices. Core area premium properties continue to attract the most interest from buyers, resulting in more frequent competition for the same listings. The Victoria Real Estate Board reported 539 sales in January 2016, up 53% from 351 sold in January of 2015 and the most in January in 14 years! The total number of properties available for sale at the end of January 2016 was only 2,471 which is down 25% from 3283 at the end of January 2015.
This ratio of sales to listings represents a 4.5 month supply confirming a Seller’s market. The resultant shift in prices from one year ago for Greater Victoria as tracked by the HPI Housing Price index shows a 10% year over year increase for a typical home to $618,600 now from $561,600 a year ago.
Why are we experiencing this? The current experience is vastly different in some markets such as Calgary which has seen a surge of listings for sale and a dramatic decline in sales! The fact is that the decline in oil prices which led to our low dollar and massive job losses in Alberta (and many local island working commuters) is helping our local economy more than it’s hurting with increases in tourism and increasingly strong growth in our high tech sector. We are also experiencing more immigration of lower mainland residents than I’ve ever seen before who are cashing out from the wealthy immigration driven boom in Greater Vancouver which caused their prices to surge upwards far above ours.
The level of activity and balance of supply and demand varies tremendously by area, price range, property type and condition. For information and interpretation of the market relative to specific properties please contact us for a FREE consultation with no obligation or register to receive our Market Snapshot with inside information about listings and sales in your neighbourhood.
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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.