Victoria Real Estate 2018: A Look Back
Victoria Real Estate 2018
We are now into a New Year and able to reflect back on the past 12 months in the Greater Victoria Real Estate 2018 market. As predicted, the market slowed throughout 2018 after the hectic markets of 2016 & 2017, and the implementation of new government policies.
“The story arc in real estate this year has been the impact of government influence on a market which was showing signs of levelling out through the latter part of 2017,” says outgoing Victoria Real Estate Board President Kyle Kerr. “All levels of government turned their focus to try to make housing more affordable and attainable across the property spectrum. The federal government’s change to mortgage lending qualification rules this year meant many consumers lost 20 per cent of their purchasing power, which contributed to slowing down the pace of the market. On a municipal level, we saw many councils activating how they can influence affordable housing by leveraging current land assets, acquiring new land and creating partnerships to bring new affordable units to market – and that’s a very exciting thing for our market in the long term. The provincial government has also promised huge investments into new affordable developments. These developments are important to the long-term growth of our community, because the only way to make more affordable housing in our area is to build it.”
We saw 20% less overall sales in 2018 compared to 2017, but still saw the benchmark values for a single family home increase by 3.2% and the benchmark value for a condo increase by 8.2%. We continued to move toward a balanced market throughout the year and expect more of the same for 2019. With no anticipated great advantage for sellers or buyers, it will give both sides an opportunity to take their time with their decisions, something that many consumers didn’t have the chance to do during the busy & unbalanced markets of 2016 & 2017.
“The market in 2019 will continue to be quieter than in previous years, as buyers and sellers adjust to new market conditions and government policies,” adds President Kerr. “Inventory is still quite low when you look at a longer range, which will continue to put pressure on pricing. Our overall economy is predicted to slow slightly, and that will likely mean a slower increase in interest rates but also slower growth. The good news is that savvy buyers will have more time to find their new homes, and that sellers will be under less pressure if they are planning to move within our market. Remember in evolving markets like ours, it’s important to enlist the services of a REALTOR® to help you navigate what may be your largest transaction ever.”
To read the full release, check it out here: http://www.vreb.org/current-statistics
If you are looking to purchase or sell a property in the current market, or in the future, get in touch with The Condo Group Real Estate for more information at 250-382-6636.
— Amy Francoeur