As predicted earlier this year, we are experiencing a gradual increase in the number of available listings for sale and moving towards a balanced market. There continue to be some neighbourhoods and property types that are in shorter supply than others, but overall the trend we’re observing is that selection is growing and upward pressure on prices is easing.
Having said that, the overall picture remains a very undersupplied market with less than a two month supply. In the month of May there were 1,006 sales in Greater Victoria and the number of active listings was up to 1,896. That’s down from last year’s record sales in May of 1,289 and up from 885 last month. The total number of active listings available for sale has been creeping up each month this year from just 1516 in January and up 12% from 1690 last month.
Prices will likely continue to rise while supply remains low, unable to keep up with the demand for those areas and property types in shortest supply. The Victoria Real Estate Board Home Price index indicates that the benchmark price for single family homes in the Greater Victoria Core increased from $706,500 in May of 2016 to $825,500 in May of 2017, a 16.8% increase.
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Victoria Real Estate Market Sees Slow Increase in Inventory
June 1, 2017 - "This month we have seen an increase in inventory - which means that buyers have more choice - and it means that now in some areas sellers are competing for buyers," says 2017 Victoria Real Estate Board President Ara Balabanian.
There were 1,896 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of May 2017, an increase of 12.2 percent compared to the month of April, but 21.2 percent fewer than the 2,406 active listings for sale at the end of May 2016.
A total of 1,006 properties sold in the Victoria Real Estate Board region this May, 22 percent fewer than the 1,289 properties sold in May last year. The ten year average for sales in May is 815 properties.
"There are many different market conditions in Victoria, because we have so many different neighbourhoods and different levels of demand for those neighbourhoods," adds President Balabanian. "The market won't change immediately, but we can track a shift as more inventory enters the market to meet the demand from buyers. Overall, pressure on pricing is easing because of the increase in inventory and the rate of increase of price is normalizing. As we have predicted, we are seeing the beginning of a gradual return to a balanced market in the Victoria area. In conditions such as the ones we see now, it's more important than ever to have an expert REALTOR® on your side whether you are buying or selling a property."
The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in May 2016 was $706,500. The benchmark value for the same home in May 2017 has increased by 16.8 percent to $825,500.
About the Victoria Real Estate Board (VREB)
Founded in 1921, the Victoria Real Estate Board is a key player in the development of standards and innovative programs to enhance the professionalism of REALTORS®. The Victoria Real Estate Board represents 1,363 local Realtors. If you are thinking about buying or selling a home, connect with your local Realtor for detailed information on the Victoria and area housing market.
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