VREB Releases February Stats

Spring might finally have arrived here in Greater Victoria, and that means the spring real estate market is on its way, too. We’re excited to see how this usually busy time of year comes together with the recent changes and announcements about how people purchase homes.

The Victoria Real Estate Board has released its February stats and, as expected, we saw the market take a slow-down. Last month, a total of 545 properties sold in Greater Victoria, 19.3 per cent fewer than February 2017. Condo sales were down 15.5 per cent last month in comparison to last year, while single-family homes were down 24.4 per cent.

Buying a home here in Victoria, and in Canada, is changing. Interest rates are on the rise and the new mortgage stress test has changed people’s buying power, and it was expected that we would see a slow down here. However, the lack of inventory is still the largest concern in our city. The demand remains strong, which puts pressure on pricing. We are still seeing multiple offer situations and prices creeping higher.

The benchmark value for a condo in Victoria rose again to $472,600, which is an increase of 19.85 per cent over last year. The value for a single-family home increased, too, to $840,300, just under 10 per cent over February 2017.

The provincial government introduced their budget in the middle of February, including new taxes designed to target people not living in BC full-time; however, while they did make a commitment to build new units, this new inventory won’t hit the market for awhile yet.

Kyle Kerr, VREB President, says, “The government needs a long-term approach to supply needs in our area, and that initial commitment is a good start. A reasonable way to bolster their commitment and improve current conditions is for the province to work with our municipalities to reduce the timelines and costs associated with bringing new housing to our market.”

To read the full VREB report, click here: https://www.vreb.org/current-statistics.

Have you been impacted by the new mortgage rules or the NDP budget?

Until next time!

Kaley + Mike