In the wake of rising interest rates, tighter lending policies and newly imposed tax measures designed to cool our over heated housing market, it would seem we should expect to see inventory rise and sales slow. With our traditionally busy spring market just around the corner, thus far we are continuing to experience lower than normal supply which is being outpaced by demand, creating a continuing, competitive market for much of the available listing inventory.
The Victoria Real Estate Board reports the total number of listings (including raw land and commercial) as 1,545 on Victoria MLS at the end of February 2018. This is an increase of only 8 listings, or 0.5% from the same time last year. Of those the number of available “residential” listings on MLS was only 1,165. Furthermore, the number of detached single family homes in Greater Victoria’s Capital Region was only 524 and only 190 condos were listed for sale in Victoria’s core.
The VREB also reported that sales declined 19.3% to just 545 properties sold in February of this year compared to 675 in the same month last year. Single family homes made up 24.4% of that decline in sales.
While inventory remains low it seems logical to expect to experience competition and continuing pressure on prices in our market. With so many factors influencing the market it’s impossible to predict the outcome, however, the constant of Greater Victoria being a highly desirable place to call home is likely to continue to keep our market buoyant despite the many interventions.
There are significant new developments underway that will contribute (especially to the condo supply) over the coming 24 months but it doesn’t appear enough to keep pace with demand with the ongoing flood of incoming new residents. The recent government budget announcement to provide an additional 114,000 housing units over the next 10 years throughout BC will eventually help some, but will take years to come online. I strongly believe that the biggest and best impact to create more affordable housing would come as a result instead of local municipalities relaxing and expediting the rezoning process, supporting increased densification and together with the province providing tax incentives to developers.
As always, market activity varies tremendously by neighbourhood, property type and price range. If you are wondering about taking advantage of this market or you happen to know someone who is, give us a call. For up to date and relevant information for you please call or text us at 250.386.8181 to arrange your free consultation, without obligation of course. We can help you to navigate this year’s spring market, ensuring any purchase and/or sale goes smoothly.
The Neal Estate Team
Victoria’s Real Estate Experts
“Go with those who know!”
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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.