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

The Victoria real estate market continued on-trend with 33% more sales in February compared to the first month of 2021.  Single-family homes were up 43.9% in February 2021 compared to the same month last year at 390 sales. Condos hit 290 unit sales and was 65.7% up year over year. Total sales year over year including single-family, condo and townhomes were up 53.3%.

With a prolonged restricted inventory and unusually high demand we have started to see upward pressure on price, especially in the single-family dwelling (SFD) market but being closely followed in the condo segment as SFD availability can’t accommodate all the prospective buyers. As properties start going in multiples, many homeowners are seriously considering selling. This is corresponding well, if not a little early, with our spring 2021 market.

Despite the significant increase in sales volume (and the sustained demand), inventory managed to remain even in February compared to the previous month (3 listings less) hitting 1,318 active listings at the end of the month. The longer-term comparison still shows the inventory problem with 38% fewer available listings on the MLS in February year over year. While it is promising to see inventory not decreasing significantly month over month, it is important to remember that January and February are traditionally when the MLS loads up on new listings before the spring buyer rush.

Victoria Real Estate Board President David Langlois had these comments:

“The theme for 2021 is going to be inventory - where does it come from and how much new supply can be approved - so that this situation does not persist,” adds Langlois. “We’ve seen the government attempt to influence the housing market in hopes of dampening the demand for home ownership. The foreign buyer tax has changed nothing – our market continues to zoom forward with almost no foreign buyers. The government adjusted mortgage qualification rules, those are absorbed by the market and buyers adjust. Demand-suppression measures have not worked and their failure to moderate housing prices in our community has only exacerbated the pressure on the supply that was constrained ten years ago but is now at historically low levels. If you are concerned about housing prices and availability of housing in general in our community, please support development in your municipality. Be vocal with your local council or neighbourhood association – these stakeholders hold the power in these negotiations - and help to make space in your community. Gentle density and the building of new homes are the only pathway to moderate housing prices in our area.”

The benchmark price according to The Home Price Index (HPI) for a single family home in the Victoria Core hit $948,200 (up 9% year over year and 1.7% from the previous month). Condos came in at $525,600, still lagged behind in HPI stats (for now) and remained even year over year and actually decreased 0.38% from the previous month.

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