Victoria Continues to Balanced Market: VREB

August is upon us, meaning that summer is, sadly, half over. But that still means that we get the other half to enjoy. The Victoria real estate market is enjoying its own summer lull, especially in the $1M+ price range.

A total of 651 properties sold last month, 17.6 per cent fewer than July of last year, and 8.1 per cent fewer than June 2018. Condo sales were down 22.6 per cent over this time last year, and single family homes were down 16.5 per cent.

We’re seeing inventory start to increase, but fewer properties under $750,000 are hitting the market, and the strain in that price range continues.

“Across our region there are 30 per cent fewer homes listed for sale under $750,000 than this time last year,” says VREB President Kyle Kerr. “This means that if you are shopping int he $750,000-or-less bracket, you are in a fast-moving market with low inventory.”

The demand remains high for this price point, while homes priced higher than that are sitting a little bit longer and buyers in that range have a bit more option. 481 single-family homes were listed for sale at over $1.5M in the first seven months of 2017, while 664 were listed in the same time period in 2018.

As we get closer to the fall, typically activity begins to increase again as people return from holidays and get back into their routines. Hopefully, we see additional inventory hit the market under the $750,000 mark to help ease the pressure in that market segment, and we can continue moving towards a balanced market.

The MLS Home Price Index benchmark value for a single-family home in July 2017 was $834,200, while it was $880,000 in July 2018, a 5.5 per cent increase. However, July 2018’s value was slightly lower than June 2018’s of $889,600. For a condo in Victoria, the benchmark value increased by 12.1 per cent over last year to $495,700, slightly higher than June 2018’s value of $496,500.

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