May Stats Surprise: VREB

With the first month of the summer push in the books, the Victoria real estate market continues to generate interesting statistics. Depending on the price point you’re shopping in, you are either seeing continued pressure or a sudden increase in your options.

Right now, buyers looking in the $1.5M+ price range suddenly have an exceptional amount of options to choose from, with almost 50 per cent more active listings in this price point than the same time last year. However, if you’re among the majority shopping under $1.5M, and even under $800K, we know you are still struggling to find something that fits what you’re looking for.

We are seeing fewer multiple offer situations; however, they are still out there. As a result, it is still vitally important to have a frank discussion with your mortgage advisor prior to jumping in about what your financial buying power looks like. As well, as the real estate climates continues to shift here in Greater Victoria, we highly suggest sitting down with a trusted real estate advisor to help you navigate the ins and outs of purchasing or selling.

Last month, 755 properties sold in the Greater Victoria area, about 25 per cent fewer than what sold in May 2017 and a 2.5 per cent decrease over last month. Condo sales were down 17.4 per cent over last year, with only 237 units sold. The biggest surprise in the condo market is that the benchmark price dropped for the first time in several months, falling to $493,900 from April’s mark of $495,100. Is it a testament to where the market is heading? Probably.

With so many changes on the horizon, including mortgage rate increases and the NDP’s proposed tax implementations, people are unsure. You can feel the uncertainty in the city, over what these things might mean to people. The frantic nature of buyers has eased a little bit. Couple that with the increased inventory and we are starting to see the beginnings of a true shift in market climate here. How long that will last is tough to say.

Victoria will always be a desirable place to own property, despite any changes the provincial government makes to ownership. People will continue to retire here and, as the industry sectors continue to develop and expand, people will continue to come here for work. The biggest problem is still the lack of attainable and affordable inventory, so it will be interesting to see how the market adjusts and if we see more freedom in the lower end of the price spectrum.

To read the full stats package, click here: www.vreb.org/current-statistics.

Have questions how these changes might affect you? Give us a call!

Until next time.

Kaley + Mike