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The Victoria Market Update - Fall 2017

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The frenzied pace that marked the Victoria real estate market in
2016 has slowed. The upward pressure on prices has eased in
the 3rd Qtr of 2017. On the supply side, the number of listings
was down marginally from the same period last year. On the
demand side there was a decrease in the number of sales. The
ratio of sales-to-listings (a measure of market strength) was down
from last year. However, Victoria still remains a solid seller’s
market. Sale prices were up significantly from a year ago.
However, with the exception of condos, prices have either
levelled off or are down slightly from the 2nd Qtr of 2017.
Properties continued to sell relatively quickly. Multiple offer
situations are not uncommon, and there was a lot of competition
for homes in the moderate price range. An analysis reveals that
some 52% of residential properties sold at, or above, their list
price in the 3rd Qtr of 2017.

The number of new listings through the Victoria Real Estate
Board’s (VREB’s) MLS® was 2,908, down slightly from 2,985 in
the 3rd Qtr of 2016. Sales of residential properties (i.e., all types
of housing excluding lots/acreage and commercial) totalled 2,046
in the 3rd Qtr of 2017, down -17.5% from 2,479 sales in the 3rd Qtr
of 2016. The sales-to-new-listings ratio was .70 in the 3rd Qtr of
2017, down from .83 a year ago but still up significantly from .51
three years ago. Both average and median sale prices were
higher. The average sale price of a residential property in
Greater Victoria and other areas was $654,046 in the 3rd Qtr
of 2017, up +12.7% from $580,416 in the 3rd Qtr of 2016. The
median sale price was $580,000, up +16.9% from $496,000 last
year. Properties sold about 0.1% below the original list price,
unchanged from last year. The figure of $654,046 compares to
August 2017 average residential sale prices and percentage
changes of $982,454 (+17.9%) in Vancouver, $732,292 (+3.2%)
in Toronto, $689,700 (+11.9%) in the Fraser Valley and $461,083
(+1.0%) in Calgary.

THE MARKET INVENTORY

There were 1,335 properties (including lots and acreage) active
on the VREB’s MLS® database for the Greater Victoria area (i.e.,
excluding the Malahat, Up-Island and the Gulf Islands) on Oct 1,
2017, up +10.1% from the inventory level of 1,213 a year ago.

SINGLE FAMILY DWELLINGS (SFDs)

Sales of SFDs in Greater Victoria in the 3rd Qtr of 2017 totalled
975, down -20.0% from 1,219 sales in the 3rd Qtr of 2016. The
average sale price of SFDs in the 3rd Qtr of 2017 was
$860,047, up +12.9% from an average of $761,718 in the 3rd
Qtr of 2016. Moreover, the median sale price was $765,000, up
15.9% from $660,000 in the 3rd Qtr of 2016. (Note: 194 SFDs,
some 20%, sold for more than $1 million). As shown in Chart 3,
sale prices that have been on a sharp upward trend since the 4th
Qtr of 2014 levelled off in the 3rd Qtr of 2017. SFDs that sold in
the 3rd Qtr of 2017 were on the market for an average of 29 days,
little changed from 27 days last year. The sales-to-listings ratio
was .64 in the 3rd Qtr of 2017, down from .82 last year.

CONDOMINIUMS

Condominium sales remained strong in the 3rd Qtr of 2017 with
sales of 660, down from 736 sales in the 3rd Qtr of 2016. The
average sale price for a condo was $432,159 in the 3rd Qtr of
2017, up +20.3% from $359,176 in the 3rd Qtr of 2016. The
median sale price was $378,000, up +21.9% from $310,000 last
year. As shown in Chart 4, the average and median sale prices
have shown an upward trend since the 4th Qtr of 2015. Condos
took an average of 22 days to sell in the 3rd Qtr of 2017, down
from 28 days last year. The sales-to-listings ratio was .77,
compared to .91 last year.

TOWNHOUSES

Townhouse sales were also strong in the 3rd Qtr of 2017 with
sales of 209, down marginally from 221 sales in the 3rd Qtr of 2016. The average selling price in the 3rd Qtr of 2017 was
$539,615, up +14.3% from $472,292 in the 3rd Qtr of 2016. The median sale price was $497,000, up +15.6% from
$430,000 last year. Townhouses took an average of 20 days to sell in the 3rd Qtr of 2017, compared to 30 days last year.
The sales-to-listings ratio was .74, down from .82 last year.

LOTS/ACREAGE

There were 41 lots/acreage sold in the 3rd Qtr of 2017. The average and median sale prices were $584,534 and $390,000
respectively. (There were three large parcels of land/lots that sold for more than $2 million each).