Ron's Candid Market Comments and Victoria Real Estate Board Market Report for July 2013

There is increasing evidence to a balanced market with trending increased sales and decreased inventory with yet another consecutive month of more sales than in the same month last year and further marginally decreased supply. The overall listing supply has slipped from nearly a year overall at the beginning of 2013 to now just over 8 months inventory of listings for sale. In my opinion we are in a balanced market when we have about a 5-6 month supply so I would still classify it as a Buyer’s market with some continued risk of prices slipping further particularly with marginal properties with significant negative influences and certainly in rural areas. There are also some property types that continue to be more oversupplied than others. Overall all signs are pointing to us nearing or having reached the bottom of this cycle. Of course there are ongoing risks of more national and global factors that can cause rapid shifts in consumer confidence, the primary factor in determining whether prices rise or fall. All in all, it seems more people every day believe that “now is a good time to buy”. I agree. FOR IMMEDIATE RELEASE August 1, 2013   STRONG SALES ACTIVITY CONTINUES IN GREATER VICTORIA REAL ESTATE MARKET VICTORIA, BC–Total real estate sales in Greater Victoria were up 11.5% in July 2013 over July 2012, the Victoria Real Estate Board reports. “Sales numbers are slightly lower than in June, but that’s part of our normal summer market cycle. When seasonally adjusted, our market activity remains strong for this time of year,” says, Board President. “Despite the brisk activity, we continue to see housing prices remain flat,” she says. “With fewer properties listed at the end of July, we are still narrowly into a balanced market.” With 583 sales in July and 4,772 active listings on the MLS® System at month end, the sales-to-active-listings ratio is 15%. Generally, analysts define a balanced market as when the ratio is between 15 and 20%. There were 345 single family homes sold in July, an increase of 17.7% over July 2012, while the median price of $521,000 is down 1.7% year over year from $530,000. There were 127 condominium sales with a median price of $265,000 and 70 townhomes sold at a median price of $360,750. “We are also seeing multiple offers on some properties, although these offers are not always over the asking price, illustrating the importance of consulting a REALTOR® to gain individual neighbourhood insight.

Total Waterfront Single Family Dwellings sold: 18, up four over July 2012

Total Non-waterfront Single Family Dwellings sold: 327, up 48 over July 2012

Single Family Dwellings sold over $1 million: 19 (2 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®. The Victoria Real Estate Board has 1,225 Members. STATISTIC REPORTS ATTACHED AND SUMMARY BELOW.

July 2013, MLS® Real Estate Sales, and Average and Median Prices, Greater Victoria  

SFD = Single-family Dwelling July 2013, MLS® Real Estate Sales and Six-Month Average Prices over June 2013 * All Areas includes Shawnigan Lake/Malahat, Gulf Islands and Up Island.