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The Neal Estate Team's Victoria Real Estate Update for February 2021

Posted by Ron Neal on Thursday, February 11th, 2021 at 4:50pm.

The Victoria Real Estate market continued strong out the gate in 2021. Selling 57.2% more units than the same month the previous year, January 2021 came in at a total of 646 sales. Our team had our busiest January on record selling 2.3% of all properties sold in VREB or 1 in every 43 sold in Janaury! The most significant bump in year over year sales was in the condo segment which was up 83.1% with 216 sales compared to January last year. There was a higher volume of single family homes sales with 297 units changing hands, but only 48.5% more than Jan 2020. Of course the sales data here does not necessarily reflect the current demand. It is likely that there simply wasn’t enough single family listings on the market to keep up with the demand in that segment.

On the inventory front, January did see more new listings coming onto the market than sales overall. While this does seem to be a well-needed respite, the numbers are not as good as they initially appear. There were 911 new listings in January, outpacing the 646 sales previously mentioned, and just barely outpacing last year's 901 new listings. From the end of December 2020 to the end of January 2021 inventory increased 3.3 percent. Where the numbers start to look more concerning is in the sales/new listing ratio with January clocking in at 71%. The ten year average for the sales/new listings in January is 43%. This means that January is traditionally a time for loading up new listings before the spring sales boost. Without that heavy loading up of listings, the spring market may be slim pickings. The 1,321 total active listings at the end of Jan 2021 was down 32.5% compared to the same month in 2020.

Looking back on 2020 we have some data on the origin of Victoria buyers. With a total of 8,224 sales last year, 73.43% came from within greater Victoria. 90.9% (including those in Victoria) came from within the province. 8% came from within Canada but excluding BC and only 1.2% came from outside Canada.

The Home Price Index benchmark price for a single family home in the Victoria Core was up 8.3% from January 2020 to hit $932,000, only 1.8% up from December. Condos lagged behind and actually decreased just under 1% to hit $518,800.

Low-interest rates are certainly one of the primary driving forces in the market and the increase in buying power is quickly being met by an increase in price. With the record low inventory and the unseasonably persistent demand, many -especially single family homes- are going in multiple offers. Simply put, prices have shifted. Further, they have shifted to an extent not yet quantified by statistics. Now is a very important time to price homes for sale properly and to come supremely prepared to the negotiation table on the buyer's side.

If you would like to know how we are beating the market, helping our clients win, and keeping people moving safely, 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

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The Neal Estate Group 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 5,000 transactions and $1 Billion SOLD, Ron Neal & The Neal Estate Group have the industry experience and market knowledge to help you make smart and informed buying or selling decisions. 


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