Victoria Market Continues to Cool

We made it! The first month of 2019 felt like it lasted an exceptionally long time, didn’t it? Or was that just us? Either way, we’re in to February and the Victoria Real Estate Board (VREB) has released its monthly review of everything that happened.

Here’s last month’s rundown:
  • 329 total properties sold
  • ↓ 23.7 per cent from January 2018
  • ↓ 12.3 per cent from December 2018

  • 111 condos sold
  • ↓ 5.9 per cent from January 2018
  • ↑ 7.8 per cent from December 2018

  • 152 single-family homes sold
  • ↓ 29.3 per cent from January 2018
  • ↓ 12.6 per cent from December 2018

Incoming 2019 VREB President, Cheryl Woolley, says, “it’s already an interesting year for local real estate. REALTORS® are keeping busy showing homes and writing offers; however, actual sales are slower than we would expect an average January.”

Keeping up with similar sentiments, the change in mortgage qualification rules have really tightening buyers’ purchasing power, sometimes reducing their budgets by 25 per cent. People are taking a step back, a breather, and really looking at how they want to spend their money and where they want to literally park it. Some people who were looking to purchase single-family homes are now looking to condos and townhomes as solutions, or they are looking farther outside the Victoria city centre for a home.

At the end of January, our MLS showed an inventory of 2,057 active listings, an increase of 3.5 per cent over December and 38 per cent increase from the end of January 2018.

Here are the MLS Home Price Index benchmarks:
  • single-family home: $847,800
  • ↑ 0.9 per cent over January 2018 but ↓ 1.3 per cent over last month

condo: $499,700
  • ↑ 6.4 per cent over January 2018 but ↓ 0.7 per cent over last month

You know, we know, we all know that the last few years has seen a demand for homes here in our beautiful region cleanly outpace our supply. We’re still playing catch-up to those years spent with an unsatisfactory amount of options, and while we are seeing increased construction in the Greater Victoria region, these options are either rentals, social housing units, or simply still a year or two from completion.

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

It’s going to take us some time to continue our journey to a balanced market and we eagerly look forward to the spring market here. Are you thinking of putting your home on the market or are you on the hunt for a new home? Let’s talk!

Navigating a changing market can be an overwhelming experience, but we want to make it easier for you, through clear communication and targeted advice. Give us a call and we’ll put the coffee (or tea!) on.

Until next time!

Kaley + Mike