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Ron's Candid Comments on Victoria Real Estate Market for June 2014

Posted by Ron Neal on Monday, June 9th, 2014 at 5:37pm.

We are seeing the trend continue of increased sales and stabilized prices with an increase in sales reported for the month of May over both the previous month and the same month last year. The number of total listings listed for sale increased to 4,672 at the end of May, down marginally from 4,783 at the end of May last year. With over 700 sales in Greater Victoria in May from a total number of listings of just under 4,700 we are continuing to experience a balanced market with about 15% of the listings available selling during the month. While interest rates remain low, the CMHC rule changes are having an impact. We had several specific clients who were qualified, ready, willing and able to purchase who now are not. One affected by the tightening of the rules for self-employed persons, another who owns a home in another market that they’ve been unable to sell which has a CMHC insured mortgage so cannot purchase a second home using CMHC insurance and a third newly graduated medical doctor also eliminated from qualifying by program changes effective June 1st. We are also continuing to see a surge of primarily Chinese immigrant investors/buyers who are fueling our market. There are no specific statistics available yet on recent months but there has been a significant increase from my personal observations. Barring any further significant changes to mortgage rules, immigration policy, global, national or local economics I think we’re poised to see prices begin to recover. I think that generally speaking market “bottomed” in Greater Victoria and we are starting to see early signs of price recovery. Remember to “buy low and sell high”! graph Here is the complete VREB news release recapping May 2014 listing and sales activity: The following news was released to local media by VREB:

Spring sales continue to rise in the Victoria market

June 2, 2014, Victoria BC - The Victoria Real Estate Board today released its monthly report on real estate activity in the Victoria area for May 2014. 714 properties sold in the region in the month of May 2014 compared to 659 in May 2013 - an increase of over 8% year over year. Compared to last month in April, there were 7.5% more sales. "We are pleased to see sales numbers continue to rise," Victoria Real Estate Board President says. "The last time we saw this many sales in a month was in 2010, which was also the last time we saw a busy market. The increase may be attributed to the extended period of low mortgage rates we are seeing, and to the great diversity of properties currently available. We saw 19 single family homes sell for over one million dollars this month, and we saw 29 single family homes sell for under $350,000. The market has something for every home buyer right now." In May 2013 the MLS® Home Price Index benchmark price for a single family home in Greater Victoria was $493,600. This year in May the benchmark home value reached $498,500 - a modest 1% increase year over year. The Peninsula benchmark home value saw a 0.7% increase while the Westshore saw a very minor decrease of 0.1%. Townhouses in Greater Victoria show the most noteworthy change with an increase of 4.2% year over year. "We're seeing a modest increase in property values overall in the Victoria area" adds President Ayres, "and the balanced conditions we talked about last month are still in place, which means a steady, predictable market."

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The Neal Estate Team

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. 

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