The trend of increased sales, fewer listing and record breaking sales continued in July 2016 for Greater Victoria with 972 sales in July, 22% more than the 796 sold in July 2015. The number of active listings also remains low with 2,161 active listings at the end of July 2016, down 45% from 3,942 at the end of July 2015. The ratio of sales to listings remains tipped in favour of sellers with just a 2.2 month supply!
The trend over the past year of fewer listings and increased sales continues to apply upward pressure on prices. The Home Price Index of single family homes in Victoria’s core increased 23.6% from $599,800 in July 2015 to $741,100 in July 2016.
It will take time to tell how our Victoria market may be affected by the new legislation introduced by our provincial government taxing foreign citizens an additional 15% on the purchase of residential real estate in Metro Vancouver. One possibility is an increased inflow of that foreign buyers to Victoria, however, in my experience most foreign investment goes where they know the neighbours and where the jobs are. Over the past couple of years stats show that about 10% of buyers in Vancouver have been foreigners while only about 3% in Victoria. It may lead to a softening of the market in Vancouver, probably mostly in the upper end. This could lead to us seeing a decrease in the volume of Vancouverites selling out and relocating to the island. I don’t think the number of people choosing to relocate to the island will slow, they just might not arrive with their pockets quite as over-flowing from windfall sales to foreign buyers. It will most certainly take some time to gather data and evaluate the impact.
July was another record breaking month for The Neal Estate Team, our most successful month of sales in 25 years! Whether buying or selling, we are Victoria’s real estate experts. We know the market and give our clients advantages! For information on “Coming Soon” listings, regular updates on activity in your neighbourhood, Free Real Estate Consultation or FREE analysis of your property’s fair market value, please contact us with no obligation 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.