Sales continued stronger than this time last year with a recent wave of buyers who were anxiously getting into homes before their preapproved interest rate holds expired avoiding the recent jump from 2.99% to 3.59% for best 5 year mortgage rates. By my calculations the increase results in a 7.3% increase in cost and decrease in borrowing power for those dependent on the security of a 5 year fixed rate(a requirement for all with less than 20% down). Although rates increased, the "CMHC Benchmark Qualifiying Rate" has held steady so far at 5.34%. For those comfortable with a variable rate Prime minus 0.4% or 2.6% is still the best rate available. Sales may slow some for the next couple of months as there was a rush to purchase by those preapproved buyers over the last 60 days. While improved significantly compared to last year, overall we still have a Buyer`s market with a supply of 4547 listings and sales last month of 487 equalling a 9 month supply, this compared to 5,025 listings at the end of September 2012 and 419 sales in September 2012 or a 12 month supply.
VREB News Release
HOME SALES BOLSTERED BY PROPER PRICING IN GREATER VICTORIA October 1, 2013
VICTORIA, BC – Finishing up the strongest third quarter since 2009, the Victoria Real Estate Board reports that properly priced homes are selling which, along with reduced inventory levels, contributed to favourable market conditions. Q3 sales totalled 1,610, a year-over-year increase of nearly 15 per cent. On a monthly scale, total real estate sales in Greater Victoria were up 16 per cent in September 2013 over September 2012. A total of 487 properties sold last month, finishing off a strong third quarter. Residential sales increased by 15 per cent year-over-year, while active listings decreased by 9.5 per cent year-over-year to 4,547. "Last year at this time, sales volumes were being undermined by the amortization changes," says VREB President. "This year is following a more historic pattern. Properly priced homes are selling and as a result consumers are responding." She adds that while sales increased over the last four months, prices remained flat. "We don't expect any significant price increases in the near future," she says. "Our provincial economist noted that while unit sales are recovering, the weak economy bears watching." There were 279 single family homes sold in September, an increase of 29 per cent over September 2012, while the median price of $523,900 is up just over one per cent year over year from $517,500. There were 105 condominium sales with a median price of $271,500 and 60 townhomes sold at a median price of $352,750.
Total Waterfront Single-Family Dwellings sold: 19, up 1 over September 2012
Total Non-Waterfront Single-Family Dwellings sold: 260, up 62 over September 2012
Single-Family Dwellings sold over $1 million: 12
Stats Quick Reference
Total Single Family All Areas includes Shawnigan Lake/Malahat, Gulf Islands and Up Island
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