The Neal Estate Team's Victoria Real Estate Update for December 2020

Low supply continued to dominate the Victoria Real Estate market once again in November 2020. Although some of the normal seasonality started to make itself felt (with a 19.7% decrease in sales volume from the previous month), November 2020 still came close to the 30-year record of sales for the month of November. There were 795 total sales (37.8% up year over year), 375 of the sales were single-family homes (up 21.8% y/y), and 262 of the sales were condos (up 62.7% y/y). Our Team participated 1 of every 33 sold last month, 3% of the market of 1,397 Realtors!

At first glance, it seems that the condo market is now leading the charge in demand as that segment saw the biggest jump in sales volume, in reality, the lower numbers posted in single-family sales are likely due to incredibly low supply. As of December 1st, 2020, there are only 324 single-family detached homes available in the Victoria Core area. Total supply decreased 14.6% from the end of October to end of November 2020, leaving 1,813 active listings for sale in the entire Victoria Real Estate Board area. 

With the Christmas season on the near horizon it is unlikely we will see a surge of people putting their homes on the market, therefore the low inventory situation is unlikely to change quickly. Demand may be less affected by the season as snowbirds who would have usually flown further south look for the southernmost within the country. Out of town buyers, first-time buyers and investors continue to fight it out over dwindling supply, taking advantage of the low lending rates and driving offers into competition and sales prices, especially of single-family homes, over list price. Furthermore, CMHC just increased the first time buyer threshold for Victoria to about $720,000.

Given these factors, it is no surprise that the Benchmark Price for a single-family home has caught up to reflect the market. Benchmark home price in the Victoria Core came in at $903,100, up 2.7% from October and 5.3% up from November last year. Condos on the other hand stayed steady at $517,600 benchmark, changing very little month over month and year over year. The price stability in the condo market could be temporary though as many more buyers are forced out of the single-family market.

There are opportunities for almost everyone in the current market, buyers getting into the market with cheap mortgages, investors looking to hold onto properties, sellers of either condos or single-family homes, and anyone in between. Despite it being a classic “seller's market” anyone with the right guidance can come out ahead.

If you would like to know how we are beating the market and helping our clients win, please click Here for a FREE consultation. Find new listings before they get to MLS and ask us about featuring your home on VictoriaComingSoonListings.com, where we generate interest while you're getting ready to come to market. Ask us also about our FREE Staging Consultation for advice on preparing your home in its best light for the market, ensuring you the best results.  

Stay safe,

The Neal Estate Team
Your Victoria & Vancouver Island Real Estate Experts
“Let our experience be your guide
www.RonNeal.com
www.HomesOnVancouverIsland.ca