Ron’s February 2013 Market Update and Victoria Real Estate Board Report

Sales remain slow with only 284 total sales on MLS this January, 27% fewer sold compared to 372 sales January of 2012 while inventory of homes for sale is up marginally to 3,870 compared to 3,715 this time last year. That translates to more than a 13 month supply = Buyer’s Market. In 2012 only about 1 in 3 who listed their homes for sale succeeded in selling. From my viewpoint prices have declined substantially in some cases, more dramatically with high end, rural and properties with significant negative influences. Furthermore, in my personal crystal ball I think the market is beginning to stabilize, many who would like to sell are now frozen with high mortgage balances relative to their property values preventing a flood of new listings at adjusted market value levels. Distressed sellers and bank sales continue to dominate the majority of those who are successfully selling. There are some very good opportunities for qualified, diligent, patient purchasers. Victoria Real Estate Board FOR IMMEDIATE RELEASE February 1, 2013                                                                                                                               SALES DOWN BUT PRICES HOLD IN GREATER VICTORIA REAL ESTATE MARKET VICTORIA, BC–A slow start to the year in Victoria’s real estate market is evidence that buyers are continuing to wait for prices to drop. Although January 2013 sales are 27% lower than January 2012, the six-month average price for a Greater Victoria home is only down 1% for the same period. “We are realistic and sales are not what we would like to see,” says Shelley Mann, President of Victoria Real Estate Board. “But there are many stories within the market. This week, three houses sold in Sidney that were all newly listed and they sold for over asking price.” Mann adds that she’s spoken to several local REALTORS® who have clients who want to buy, but they are looking for good houses with quality amenities. “One Member told me that he has several potential buyers, but they can’t find anything they like.” In January, 294 houses sold, compared to 372 in January 2012. The median price of a single family home is $482,500 compared to $522,000, a decline of 7.6.%. The six-month average shows a 1.4% decline, year-over-year, but less than one percent over last month.“My basic message is that sales are down, prices are flat and our provincial economist is predicting 2013 will be a transition year,” Mann says. “He believes the economic fundamentals are strong, and as a result the sales volume will increase 4% this year over 2012, but prices will remain flat.” Current active listings are 3,870. There were 81 condominium sales in January, a 24.6% increase over December 2012, while the median price of $238,350 is down 12.1% year-over-year. Townhouses saw increased sales in the past month and a median price of $382,000, up 4.7% year-over-year. Total Waterfront Single Family Dwellings sold: 9, up 5 over January 2012 Total Non-waterfront Single Family Dwellings sold: 144, down 43 sales from January 2012 Single Family Dwellings sold over $1 million:  3 (1 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®. January stats summary below. January 2013, MLS® Real Estate Sales and Average Prices, Greater Victoria January 2013, MLS® Real Estate Sales and Six-Month Average Prices over December 2012