VREB Victoria Real Estate Update December 2013-Ron's Candid Thoughts

Sales in November slowed to only 412* compared to October’s 512 sales as expected with normal seasonal slowdown and remained higher than November of 2012’s 366 sales. We can expect to see the downtrend in sales volume until we pass through the holiday season when sales will of course increase. Important to note is the continuing downward trend in supply as the total number of active listings continued its decline to only 4,017 at the end of November compared to 4,488 at the end of November last year. Contrary to general belief, right now and early in the new year is a great time to buy or sell as there is less competition in selling than in the spring and also those who are trying to sell are typically more serious about selling. *Note: The Victoria Real Estate Board’s News Release shared on 3 December 2013 mistakenly reported that 381 single family homes sold in November, but their numbers were not adding up to the total of 412 properties reported sold.  We came to the conclusion that there was an error in the report which the board subsequently corrected after we alerted them. The correct number of single family homes sold in November was 216 and the corrected report is now available. VREB News Release VICTORIA REAL ESTATE SALES MODERATE IN NOVEMBER; OVERALL PRICES REMAIN FLAT December 3, 2013 VICTORIA, BC–Greater Victoria real estate sales moderated in November following a brisk June-to-October market. According to the Victoria Real Estate Board (VREB) MLS® System, 412 properties sold compared to 366 in November 2012, an increase of 12.6 per cent. “We saw market activity slow down after a very busy five months,” says VREB President. “While sales were higher than in November 2012, fewer sales than previous months indicate a pull back in consumer demand.” Flat employment and weak economic growth are likely contributors to a moderating market. Active listings continued to decline, with 4,017 at the end November compared to 4,488 in November 2012. December and January are typically the slowest months for real estate sales. For November 2013, the MLS® HPI benchmark price for the Greater Victoria single family benchmark home was $482,300 and its corresponding index value was 136.5. (This represents a 36.5 per cent increase since January 2005, when the index was 100). This benchmark price decreased 0.72 per cent over the past month and decreased 3.11 per cent over the last year. At the regional level, the benchmark price for the single family benchmark home in the Core municipalities was $548,600, an increase of 0.14 per cent over the previous month and a 1.65 per cent decrease over November 2012. In Westshore, the benchmark price for the single family benchmark home was $403,600, a decrease of 1.70 per cent over October 2013 and 5.94 per cent decrease over November 2012. The benchmark price for the single family benchmark home on the Peninsula was $508,000 for November, a decrease of 0.04 per cent over the previous month and a 2.57 per cent decrease year-over-year. There were a total of 216 single family homes sold in November, an increase of 6.9 per cent over November 2012. November also saw the reporting of 99 condominium sales and 49 townhouse sales in Greater Victoria. Benchmark prices for the Greater Victoria condominium benchmark home and for the Greater Victoria townhouse benchmark home for November were $280,600 and $389,000 respectively. Total Waterfront Single Family Dwellings sold: 9, up 3 over November 2012 Total Non-waterfront Single Family Dwellings sold: 207, up 11 over November 2012 Single Family Dwellings sold over $1 million: 7 (1 over $2 million) On November 1st, the VREB adopted the MLS® Home Price Index (MLS® HPI) to report residential property price trends. The methodology used by MLS® HPI has been endorsed by Statistics Canada, Canada Mortgage and Housing Corporation, the Bank of Canada, Finance Canada and Central 1 Credit Union. At the heart of the MLS® HPI is the concept of the “benchmark” home, a notional home that has the most common features of a typical home in a given area. The benchmark home is not meant to represent any actual house, condo or townhouse, but merely provides an identical example to track market changes. There are separate benchmark houses, condos and townhouses in each distinct area of the Greater Victoria region, enabling price tracking of very distinct markets.