479 single-family homes sold in the VIREB area in June 2020, a 15.2% increase from the same month last year snd a whopping 48.6% increase compared to May 2020. Condos sales also did much better than the previous month, increasing 59% and 3% year over year.
Available listings, on the other hand, decreased. Single-family home inventory dropped 23% compared to last year to hit 1,224 available properties. The inventory of condos rose in almost the same proportion in the other direction (up 22%) to hit 431 available units.
The flurry of activity is a good sign of market recovery. An increase in sales volume and the depressed inventory are leading to multiple offer situations and an increase in benchmark prices in most areas. Not only is pent up demand from buyers who have had previously put their real estate plans on hold affecting the activity of the market, but also low-interest rates.
Other factors include the lifting of a blanket ban on rental evictions, now transactions needing vacant possession can proceed (although eviction for unpaid rent was not one of the restrictions removed). Another factor we could be seeing is CMHC’s announced policy changes which will decrease the purchasing power for those without a significant down payment (over 20%). We could be seeing some extra activity as people try to make their purchases before those measures take effect. It should be noted however that there are alternatives providers of mortgage insurance and they have claimed they will not be following CMHC in their policy changes, for now.
As previously mentioned, the nature of the current market has lead to an increase in benchmark prices. Board-wide benchmark prices for a single-family home increased 4% compared to last year and 1% from last month to hit $534,800. Condos inversely were down from last month (2% down) and up from last year (3% up) at a $312,600 benchmark value.
In summary, it looks like the market is recovering post-COVID restrictions well in a somewhat product-specific manner. Pent up demand, low inventory, and other factors are contributing to the flurry of activity but it remains to be seen how sustained the activity will be. As with all things on a large scale that are outside the norm, there is an underlying anxiety that is yet felt by many. That being said, if you are thinking about selling, now is a great time to sit down with one of our Neal Estate Team professionals.
If you would like to know how we are beating the market and helping our clients win, please click Here for a FREE consultation. Ask us about featuring your home on VictoriaComingSoonListings.com to ensure the best results and we hit the ground running together as we get to the other side of this.
The Neal Estate Team
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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.