There were 8,944 properties sold on Victoria’s MLS in 2017, a decline of 16% from the record setting 10,622 the previous year but still more than 20% above the 10 year average of 7,349 sales.
With just 1,090 active residential listings effective December 31, 2017 and 1,367 licensed Realtors with the Victoria Real Estate Board, the historically low supply continued through the past year and remains a significant factor for our market in January 2018.
The MLS HPI (Home Price Index) reports that the benchmark price was up 9.3% from a year ago for single family homes in Victoria’s Core (Victoria, Oak Bay, Esquimalt, Saanich and View Royal).
You should have received your updated property assessment notice from BCAA reflecting your property value effective July 1, 2017. Most increased year over year by between 10% and 25%. If it overstates your value, you will pay more you’re your share of property tax. You have until January 31st to appeal the value. Would you like information and assistance to accurately verify your property value?
You can find your property tax assessment here! To receive information and updates on current listings and recent sales in your neighbourhood, including the sold prices, click here or call us for assistance.
As is always the case, the market is quite different from one part of town, type of property and price range to the next. For example, downtown rentable condos remain in very short supply. In the six months from July through December 2017 there were 144 listed for under $500,000. Of them 106 sold and just 21 are listed for sale now. That’s an average of 17.6 per month selling, just a 1.2 month supply. On the other hand, there is an abundant supply of luxury homes for sale. In the same time period of the last six months there were 155 single family homes offered for sale for more than $2,000,000 on Victoria’s MLS. Of those just 27 sold and 60 remain available for sale today. That’s an average of just 4.5 per month, a 1.1 year supply!
Our market was influenced by many outside factors over the past year including implementation of foreign buyer taxes to the GTA (Greater Toronto Area), new BC provincial government, new mortgage rules and more. The foreign buyer tax reduced some of the influx of high end buyers cashing out of both the Vancouver and Toronto markets. The new mortgage stress test inspired many of the most affected to move up plans to purchase in the last quarter of 2017 before they were in place January 1st, 2018. Now those buyers have 20% less buying capacity.
So what’s in the crystal ball for 2018? We have the lowest reported unemployment in Canada here in Victoria at just 3.3% last month which suggests that everyone who is capable and willing is working. Our vacancy rate is hovering near zero in the core and no more than 1% in outlying areas which is pushing rents up, 7.7% on average in 2017. Immigration remains strong with our strongest economic sector Technology followed by Tourism distantly in second place. We still outpace the rest of Canada with an average of more than 1% net annual growth. That’s about 4,000 new people annually who need somewhere in the capital region to live. In areas, property types and price ranges where inventory remains low we should continue to see upward pressure on prices and competitive buying circumstances favouring sellers. It will help ease vacancy, boost supply and looks good for developers who are expected to bring on almost 3,000 more units in 2018.
Whether considering a move or an appeal, we are happy to assist. Please email RonNeal@REMAX.net call us at 250.386.8181, there is no obligation of course!
The Neal Estate Team
Victoria’s Real Estate Experts
“Go with those who know!”
Leave a Comment
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.