THE VICTORIA MARKET
Posted by John Vernon & Associates on
Despite an increase in sales, prices in the Victoria real estate market have remained flat over the past several quarters. The upward pressure on prices eased in the 3rd Qtr of 2018 and after a modest decrease, prices have levelled off. On the supply side, the number of listings was up from the same period last year. On the demand side, there was an increase in the number of sales.
The ratio of sales-to-listings (a measure of market strength) was up from last year. Properties are spending more time on the market before they sell. Demand remains fairly strong for homes in the moderate price range while price reductions are increasingly prevalent for expensive properties. Overall, the Victoria real estate market remains in balanced market territory.
The number of new residential listings through the Victoria Real Estate Board’s (VREB’s) MLS® in the 3rd Qtr of 2019 was 2,999, up +4.0% from 2,883 a year ago. Sales of residential properties (i.e., all types of housing excluding lots/acreage and commercial) totalled 1,889 in the 3rd Qtr of 2019, up +12.2% from 1,683 sales in the 3rd Qtr of 2018. The sales-to-new-listings ratio was .63 in the 3rd Qtr of 2018, up from .58 a year ago. While the average sale price has declined, the median sale price has changed little from last year. The average sale price of a residential property in Greater Victoria and other areas was $675,083 in the 3rd Qtr of 2019, down -4.6% from $707,531 in the 3rd Qtr of 2018. The median sale price was $610,000, up +0.8% from $605,000 last year. Properties sold about -4.0% below the original list price. The figure of $675,083 compares to August 2019 average residential sale prices and year-over-year percentage changes of $974,167 (-3.7%) in Vancouver, $792,661 (+3.6%) in Toronto, $719,800 (-2.0%) in the Fraser Valley and $439,720 (-5.6%) in Calgary.