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

2020 was full of unexpected market movements, along with everything else unexpected last year. Who could have predicted that a global pandemic, total disruption of the economy and a spike in unemployment would lead to skyrocketing demand from buyers looking for homeownership. And yet, there was a total of 8,487 home sales in 2020, over a thousand units more (17.1% more) than 2019.

Though unexpected there were several indicators as the year progressed. We saw pent-up demand as restrictions eased and buyers shifted heavily to the single-family market. We saw uber low-interest rates, money coming out of the stock market and into the real estate market, and out of town buyers cashing out their Vancouver properties to settle on the island.

The past year told a story of almost continuous month over month decline in inventory as sales outpaced new listings. December 2020 paints the picture for the whole year with 1,279 listings active, 29.5% less than the previous month and 34.5% less than December the previous year. December 2020 had the lowest active listings on market at month-end in the past 25 years.

With the increases in demand and the prevailing low inventory we saw areas outside Victoria Core pick up much attention as prices increased and listings started going in multiple offers closer in. Condos and multi-family dwellings lagged behind somewhat as it seems the pandemic motivated people to find their own space. Inventory of condos stayed higher also and as we head into the spring market of 2021 there could be lots of options for buyers in this segment.

As is typical, December saw a decrease in sales from November (20.6% decrease) with 631 total sales in the Victoria Board area. While December certainly slowed, it still saw 57% more sales than the same month the previous year. 314 of those sales were single-family homes (58.6% up from last year), and 195 of those sales were condos (61.2% up from last year). It is also worth noting that the condo market could be the next ‘hot market’ as buyers are edged out of the single-family market and more options become available in the condo segment.

Multiple offers, especially on single-family homes, have become extremely common and we have seen house prices increase accordingly to close the gap of increased buying power through lower interest rates. The Home Price Index benchmark value for a single-family home in the Victoria Core increased 8.6% year over year to hit $915,100, only slightly more than November. Condos, showing their lag, decreased .09% year over year to hit $515,600.

We are heading into a market that while not clearly predictable in the long term is currently filled with opportunities for both buyers and sellers.

Its that time of year that you should have received your property value assessment notice. It is important to note that the BCAA value reported was effective July 1, 2020. It is also important to note that your BC Assessment value seldom reflects current/accurate value due to the fact that they do not reinspect the property and are often unaware of updates or other factors. If you feel the reported value on your property is inaccurate and would like it reviewed to be increased or decreased, you have until January 31st to contact BCAA and initiate a review. We are happy to provide area sales information to support your appeal. You can find your property tax assessment here! 

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