Victoria Real Estate: Sales Slow in February

We’re now moving in to March and can reflect on the past two months in Greater Victoria Real Estate since the new mortgage stress test came into effect this year. That, along with low inventory has led to a decreased number of sales since last February.

“We certainly anticipated that we would see some lower numbers this year compared to last,” says Victoria Real Estate Board President Kyle Kerr. “Right now prospective home buyers are met with many hurdles as they start shopping for their new home. They’re in a market that’s experienced long-term low inventory, which means more price pressure and competition on homes. Buyers are navigating increasing interest rates and the new mortgage stress test. These factors all combine to constrain our market. Like any changes to consumer experience, there is a period of response before consumers adapt to the new rules. We saw an increase in buyers in November and December who bought early to avoid the mortgage stress test, and this likely means less buyers in the current market. However, with continued historical low inventory levels, demand is still outpacing supply.”

As for condos, we saw a decrease in sales too. There were 174 condos sold this month, compared to 206 in February 2017, although still an increase from January of this year where we saw 118 condos sold. Even though we’re seeing a lower number of sales, the average sale price of a condo is still up 10% from this time last year, and properties are still selling very competitively.

To read the full statistical release from the Victoria Real Estate Board, 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 for expert insight and advice at 250-382-6636.

— Amy Francoeur