After declining sales activity for Victoria Real Estate Board each month since May, we experienced a seasonally unusual increase in local sales volume from October to November with a total of 671 properties sold, also 12% more than November the previous year. In fact it was the highest number of sales recorded in November since 1996.
This increase was attributable at least in part to a surge of activity generated from anxious buyers rushing to lock down purchases before new mortgage rules take affect in the new year. The new mortgage rules will decrease the average home buyer’s purchase threshold by more than 20%.
The total number of properties listed and available for sale followed our typical seasonal decline to just 1,764 listings down 7.4% the previous month and also 2.8% lower than this time last year.
Increased sales and decreased listings means that the balance of supply and demand once again shifted favouring sellers resulting in increased competition for select properties in the most desirable areas and price ranges. Benchmark home prices for single family homes in Victoria’s core were reported as up 10.2% year over year from $748,500 to $824,600 at the end of November 2017, also up slightly from $821,900 at the end of October.
It seems likely that we will see continued above normal seasonal buying activity through December although with continuing declining selection until we begin the new year. In the new year the already announced government initiatives with more proposed to follow targeted to calm housing markets are likely to quickly become evident. A significant indicator to watch is the volume of listings available for sale for while it remains low upward pressure on prices will remain our reality.
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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.