Victoria Real Estate: May Statistics
The Victoria Real Estate Board has released the real estate statistics for May in the Greater Victoria Real Estate market. We have seen an overall 25% decrease in sales compared to May of 2017. However, we’re still seeing pricing increases with continued pressure on the lower end of the market. We are seeing an increase in inventory, but we still need way more inventory in order to return to a ‘balanced market’. See graph from the Victoria Real Estate Board below.
“It’s no surprise that our current market is very different than it was last year,” says Victoria Real Estate Board President Kyle Kerr. “Due to recent changes in mortgage qualification rules, many buyers’ purchasing power has been reduced. Unfortunately, in our area we have one third fewer single family homes for sale under $750,000 when compared to last year, so we’re seeing pressure from increased competition on a smaller number of homes, which is really pushing the under million dollar market. We have a much larger inventory of higher value homes this year. For listings priced at $1.5 million and above, the number of active listings is almost 50% higher than last year at this time. Arguably, many of these properties may be listed due to new and incoming taxes from the provincial government. The Foreign Buyer Property Transfer Tax, the Speculation Tax, and the increased School Tax are putting pressure on those high value home owners. Unfortunately, these taxes are not resulting in what the government said it intends – to increase the availability of affordable housing.”
As for condos, we did still see a decrease in overall sales compared to last year, however a 17% decrease compared to the 23% decrease in sales of single family homes. We still saw a 10% increase in average price/unit over May of last year.
“We’re in an interesting time here – we are seeing different levels of price pressure and price relief in microclimates of our area,” adds President Kerr. “You may find more flexibility if you are shopping for a multi-million dollar estate in certain areas. You may be in for a competition if you’re shopping for a lower priced home or condominium. If you’re thinking of buying or selling, it’s a good idea to meet with a local REALTOR® to understand how the current environment will affect you.”
To read the full real estate statistics report 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