THE VICTORIA MARKET
Posted by John Vernon & Associates on
The real estate market in Victoria continues to cool. Perhaps this is not surprising given the increase in mortgage rates, the tightened mortgage rules and the uncertainty created as a consequence of the BC government’s recent housing policy proposals. Beyond this, the real estate market is coming off a period of extraordinary demand, record sales and price increases. Although sales are down from the levels of recent years, prices remain stable and appear to be levelling off. The market continues to move towards balanced market territory. Homes are taking a bit longer to sell. Despite an increase in supply, multiple offer situations are still not uncommon, nearly half of the homes sold at, or above, their list price.
The number of new listings was 3,777, in the 2nd Qtr of 2018, virtually unchanged from 3,781 a year ago. Sales of residential properties (i.e., all types of housing, excluding lots/acreage and commercial) through the Victoria Real Estate Board’s MLS® totalled 2,121 in the 2nd Qtr of 2018, down -23.0%
from 2,756 in the 2nd Qtr of 2017. The sales-to-new-listings ratio was .56 in the 2nd Qtr of 2018, down from .73 a year ago. Homes that sold in the 2nd Qtr of 2018 were on the market for an average of 26 days, up slightly from 23 days last year. Both average and median sale prices continue to trend upward. The average sale price of a residential property in Greater Victoria and other areas was $703,481 in the 2nd Qtr of 2018, up +7.2% from $658,003 in the 2nd Qtr of 2017. The median sale price was $627,000, up +9.0% from $575,000 last year. The figures for Victoria compare with year-to-date average residential sale prices and percentage changes of $1,061,266 (+3.1%) in Vancouver, $755,117 (+10.9%) in the Fraser Valley, $785,808 (-11.0%) in Greater Toronto and $465,746 (-1.5%) in Calgary to the month of May 2018.