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

The Victoria Real Estate Market saw another month of higher than usual sales numbers. In a typical year, October would be the start of a gradual slowdown until the end of the year, but with 990 sales last month the market shows no signs of following traditional seasonality. Looking year over year total sales were up 59.9% (and 0.1% compared to September 2020). Breaking those numbers down to housing type, single-family homes were up 53.1% compared to last year and condos were up 70.8% in the same comparison. While it seems surprising that condos led the charge on sales volume increase (single-family home sales decreased compared to September 2020), it is likely that there is simply not enough inventory to support the demand in that segment.

While demand is still clearly very strong, it is unlikely that much of it is leftover pent up demand from the spring market. To theorize where this demand is coming from we can look at things like very low-interest rates and statements from The Bank of Canada saying that it has no plans on changing the interest rate until inflation gets back to 2% (something they don’t think will happen until 2023). The extra borrowing power may be causing buyers to be more proactive in buying now instead of waiting for the early 2020 spring market (especially with the uncertainty of upcoming restrictions and lockdowns). While some local buyers may be incentivized by the lending rates, other than first-time buyers and investors, most local buyers would need to sell and buy leading to a 1 to 1 effect on supply and demand. The low inventory and sky-high demand (and active luxury market) indicate that much of this demand is coming once again from out of town buyers. Our luxury high-end market which languished since the introduction of the foreign buyer's tax and is now very busy with incoming Snowbirds who are restricted from traveling to warmer southern locations and also many returning ex-pats. Vancouver Island wide in 2020 to date there have been 218 sales over $2,000,000 compared to just 111 sales over $2,000,000 in all of 2019. Vacation rental investors who initially took a hit with Covid are now busier than ever with visiting Canadian Snowbirds.

New listings in October just managed to outpace the number of sales in the month, yet still, the number of available listings dropped 19.7% compared to the same month last year. There were 2,122 active listings available at the end of October 2020, just over 2 months of inventory if the current sales volume continues (this puts us firmly in a seller's market).

Benchmark values according to the Home Price Index for single-family homes stayed the same from last month but were up 2.3% from last year to hit $879,600. Condos on the other hand stayed the same year over year but gained 0.3% from September, bringing the benchmark value to $510,600.

As we have said before, now is a great time to sell. We saw a dip in single-family sales but that could be purely an inventory problem (so if you have one to sell, give us a call). Condos saw a big jump in demand after a few months of lagging behind. As we continue into uncertain times, we here at The Neal Estate Team continue to guide our clients with proven experience as our team approaches 5,000-lifetime homes sold this month.

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