Ron's Candid Comments on the Victoria Real Estate Market - May 2013

Goodbye HST, hello Sales! With last month’s numbers we saw a change in the direction with now fewer listings on the market than at this time last year and increased sales. While it’s early to recognize the increase in activity over the last few weeks as a “trend”, it’s encouraging to say the least! By my personal observations the scales appear to be tipping back towards balance with an increasing number of buyers expressing positive sentiments about this being a good time to buy. It’s historically normal for us to see an increase in both listings and sales as the weather warms up in Spring. We experienced declines in sales and prices over the past few years when many other Canadian and even some BC markets continued to increase, I think we may have reached the bottom of our correction. I don’t think prices are likely to recover and increase dramatically in the short or mid term but stability and increased activity is very welcome back! May 1, 2013        GREATER VICTORIA RESIDENTIAL REAL ESTATE TRANSITIONS TO A BALANCED MARKET VICTORIA, BC–Weighing in on the best April since 2010, Shelley Mann, President of the Victoria Real Estate Board, is cautiously optimistic that Greater Victoria is back into a balanced market. “Consumer confidence is increasing,” Mann says. “Our total number of sales for April was 615, a 5% increase compared to April 2012 with 586 sales.  On the residential side, more properties are selling, and slightly fewer are entering the market, so we are moving from a buyers’ market to more balanced market conditions.”Mann cautions that one month doesn’t indicate a market trend, but is encouraged by increased showings by REALTORS®, the number of sales, and comments from other REALTORS® about multiple offers on properties.Prices remained relatively flat, as predicted by Cameron Muir, Chief Economist of the BC Real Estate Association. There were 367 single family homes sold in April at a median price of $540,000, a 16% increase of homes sold over April 2012. Condominium sales were 149 at a median price of $265,000 and with 62 townhomes sold at a median price of $415,450. There were 4,585 listings active at the end of April. Total Waterfront Single Family Dwellings sold: 15, up 2 over April 2012Total Non-waterfront Single Family Dwellings sold: 352, up 39 over April 2012 Single Family Dwellings sold over $1 million: 30 (5 over $2 million) While the use of average price information can be useful in establishing trends when applied over a period of time, e.g. six months or longer, the Victoria Real Estate Board cautions that an average price does not indicate the actual value of a property in a particular neighbourhood. Those requiring specific information on property values in their area should contact a REALTOR®.