Spring has sprung and the cherry blossoms are out (late this year) and sales continue to be very strong, although down some from last year’s record pace due entirely to the lack of supply. There were 929 sales in March which is 17% fewer than the 1,121 sold in March of last year. That’s still significantly higher than the 734 properties sold in March of 2015.
We had expected to see an increase in listing inventory as we came into the spring market, but while the number of new listings coming on has increased, it has only marginally outpaced demand. The number of unsold available residential listings as of this writing in Greater Victoria is just 1,223. That’s only up about 10% from this time last month and still less than the number of Realtors in Victoria! The ratio of current listings to sales shows literally just a 40 day supply! The scales are still very much tilted in favour of sellers.
At this pace, until there is a government intervention or a significant economic event, I would expect to see continuing upward pressure on prices. Over the past year the benchmark price for single family homes in the core of Victoria have increased by 19.1% from $663,300 to now $790,100. We are literally still half the price of Vancouver!
It’s important to understand that prices are changing at different rates for different property types, neighbourhoods and price ranges. For direct personal access and regular updates on activity in your Greater Victoria neighbourhood, please Register For Our FREE Market Snapshot. If you’re considering buying and/or selling now or in the near future, please contact us for a FREE no-obligation consultation.
Ron Neal and The Neal Estate Team
Victoria’s Real Estate Experts
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VREB News Release
Victoria Real Estate Market Continues Trend of Low Inventory, High Demand
April 2, 2017 - A total of 929 properties sold in the Victoria Real Estate Board region this March, 17.1 per cent fewer than the 1,121 properties sold in March last year.
"We predicted early in the year that we wouldn't see a continuation of the record sales numbers that we saw in 2016," says 2017 Board President Ara Balabanian. "However, we are still in a very active market, as evidenced by the fact that this is second highest March on record if you remove that record breaking 2016 data. We saw nearly 200 more transactions last month than March 2015, when 734 properties sold."
The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in March 2016 was $663,300. The benchmark value for the same home in March 2017 has increased by 19.1 per cent to $790,100.
Inventory levels edged lower, with 1,556 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of March 2017, 40.6 per cent fewer than the 2,618 active listings for sale at the end of March 2016.
"The public and REALTORS® are getting used to the new tempo of the market - with the ongoing historically low inventory levels and high consumer demand - both parties need to be tenacious and have quick reflexes. Sellers need to ensure they have assistance from an experienced local Realtor to help understand current demand and pricing. Even in this market, properties can sit unsold for months without selling because of an inappropriate price," adds President Balabanian. "We do think we will see a more balanced market in the future as more inventory becomes available. Traditionally, people prefer to list their home when gardens and outdoor areas can be shown to their best advantage. Hopefully, as our warmer weather arrives we will see more listings added into the market to offer more choice for buyers."
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