HOT or NOT? Ron Neal’s Candid Victoria Real Estate Update for May 2015

Literally every day I’m asked, “How’s the market Ron?” Being the positive minded optimist and salesman that I am of course I start with “Great!” The I have to add, “Depending of course on area, property type and price range you’re referring to.”

I reviewed properties listed between January 1st and March 31st of 2015. I calculated the number and percentage of them that had sold by May 1st 2015. I considered various districts and map areas, price ranges and property types. Here are a few random examples to illustrate:

• 46.4% of Single Family
• 43.8% of condos
• 11.3% of lots
• 6.1% of Commercial
• 49.6% under $500,000
• 25.3% over $1 Million
• 56.4% of Saanich East
• 32.1% of Metchosin
• Lakehill 77.8%
• Cordova Bay 35.6%
• Uplands 27.8%,
• Fairfield West 61.0%
• Fairfield East 48.9%
• Prospect Lake 38.4%

Please contact us for other area numbers.

The numbers are out, there’s a lot of hype. Yes there are many homes selling, that part is true. Overall I would agree that we’ve shifted into what could be defined more as a Seller’s market with more the overall proportion of properties offered for sale relative to the number selling now down to less than a 5 month supply. We’re seeing more than half of the properties that are listed successfully selling, a great improvement and still recovering from a few years of less than 40% of those listed actually selling.

The result of this shift of supply and demand, which has been steadily building since the end of HST, is that the areas in highest demand are now significantly under-supplied and definitely “hot” with multiple competing bids on newly listed and well-priced listings. Achieving the best possible results in these areas requires carefully executed planning and strategy combined with negotiating expertise. In other areas with less attention and interest, it’s business as usual with the right combination of preparation, targeted marketing and time to succeed with the best outcome.

The Victoria Real Estate Board reported 840 residential sales in the month of April 2015, 26.5% more than the same month last year while the number of listings stayed below last year’s level with 3,945 active at the end of April compared to 4,404 this time last year. That’s a drop to a 4.7 month supply from 6.6 months last year. The HPI (Housing Price Index) shows an overall rise in sold prices of 3.5% from a year ago to an average now of $581,700. The last time we saw sales volumes at these levels was in the Spring of 2007.

The VREB news release further says that prices in some areas are still as much as 9% lower than in 2010. While accurate, this is based on averages and doesn’t recognize that some areas, property types and price ranges are still significantly lower than they were at that time. In some cases more than 30% lower than the peak which we still haven’t gotten back to. I agree, it’s an excellent time to buy in our market.

It would be my pleasure to provide specific statistical information, details on recent sales and current listings in your neighborhood. CLICK HERE NOW for your custom Market Snapshot or call 250.386.8181

Read the full Victoria Real Estate Board report here.

Media release from VREB

May 1, 2015, Victoria BC – The Victoria Real Estate Board today released its report on real estate activity in the Victoria area for April 2015. A total of 840 properties sold in the Victoria region this April, a 26.5% increase compared to the 664 properties sold in the same month last year.

“We’ve seen modest sales increases in the area for the past two years, which we’ve attributed to a growing consumer confidence in the market,” Victoria Real Estate Board President says. “The past three months have been exceptional, and I think have surprised most people watching the market; I certainly haven’t seen forecasts even close to the numbers we see today. It’s possible that consumers who were hesitant to make a move or purchase their first house during the recent economic downturn may have waited to see conditions like we see now – the favorable interest rates, good selection of prices and properties, and increased confidence in the local economy.”

There were 3,945 active listings for sale on the Multiple Listing Service® at the end of April, 10.4% fewer than the 4,404 active listings in April 2014.

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core this time last year was $562,000. The benchmark value for the same home this month has increased by 3.5% to $581,700.

“The last time we saw this many transactions in an April was in 2007 when we saw 898 sales,” the President adds. “The market is good, but prices aren’t crazy – despite the activity levels, values in our local market are still recovering from the peaks we saw in 2008 and 2010. Depending on the area, single family property values are as much as nine percent below the 2010 values. It is a great time to buy or sell property in our area.”