Following a bit of a lull in the wake of rising interest rates, tightening lending policies and many threatened new tax measures, our team has experienced a surge of activity doubling our sales from last month and selling about 1 in 35 of the homes sold in Victoria in October. Some of this is arising clearly from those rushing to lock down financing before the new rules kick in January 1, 2018. The rest is simply from a massive backlog of demand from those who have been unable to make a move when the competition was so fierce. While the race for new listings isn’t over, the number of properties selling with delayed offers and multiple competing bids for over asking price has declined significantly.
As sales have generally declined over the past few months and values have too, I keep expecting to see a rise in inventory…which still evades us. In fact the total number of listings available for sale declined again last month to just 1,905 which is down 3.6% from 1,976 at the end of September and also 1.7% lower than the 1,938 in September of last year.
The number of sales reported by the Victoria Real Estate Board decreased almost 10% to just 664 last month compared to 735 sold in October of last year. The balance of supply and demand is hovering near a three month overall supply, still balanced on the surface but with significant variations by area, property type and price range.
Despite the appearance of an undersupplied or somewhat balanced market, the Victoria Real Estate Board’s MLS Home Price Index indicates that Benchmark prices for homes sold in Victoria’s Core have declined since July of this year to $821,900 from $834,200 in July. The Benchmark is still up more than 9% from $752,000 in October 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.