Greater Victoria Market Update – September 2019

Victoria’s real estate continues to follow historic patterns.

Hello everyone!

I hope you all had a lovely summer and are comfortably back into your usual routines. The kids are back to school and folks are settled into their work week. I don’t know about you but, I’m already working on my Christmas holiday plans!

Straight from our Victoria Real Estate Board President Cheryl Woolley, “August could be considered a status quo month for real estate in greater Victoria with entry-level homes selling quickly when priced appropriately, and higher-end properties moving at a slower pace. As expected, we’ve seen relatively stable pricing, with an uptick in sales – particularly single-family homes.  Unfortunately, summer has been accompanied with a slowing of new inventory coming onto the market, which suggests it is a good time for prospective sellers to consult with their REALTOR® about selling in the fall market.”

Here are the numbers for Greater Victoria for the month of August 2019.

SALES

In total, 661 properties sold in the Victoria Real Estate Board region, this is 11.3 per cent more than the 594 properties sold in August 2018 but a 6.4 per cent decrease from July 2019

Condominium sales were up 4.1 % from August 2018 with 203 units sold.

Single family homes saw an increase of 15.5 % from August 2018 with 351 sold.

LISTINGS

There was a total of 2,838 active listings for sale at the end of August 2019. This includes single family homes and condominiums. We saw a decrease of 3.8 % compared to the month of July 2019 but a 12.7 % increase from the 2,519 active listings for sale at the end of August 2018.

MLS® HOME PRICE INDEX STATS

For a single-family home in the Victoria Core in August 2018 it was $888,100. The benchmark value for the same home in August 2019 dropped by 4.6 % to $847,300, a tad less than July’s value of $858,800.

For a condominium in the Victoria Core area in August 2018 it was $503,600, while the benchmark value for the same condominium in August 2019 increased by 2.9 % to $518,100, this is lower than July’s value of $523,400.

FIRST-TIME HOME BUYER INCENTIVE RELEASED

On September 1st, the Federal Government released it’s First-Time Home Buyer Incentive program. “We’re pleased the government is looking at creative ways to get first time buyers into homes as this program will help some buyers in Canada’s smaller markets. We look forward to hearing how the federal government plans to help first time buyers in larger markets like Victoria, perhaps by adjusting the mortgage stress test parameters and extending the length of mortgage amortizations”, states VREB President Cheryl Woolley.

Eligible first-time home buyers who have the minimum down payment for an insured mortgage can apply to have a portion of their home purchase financed by the Government of Canada through a shared equity mortgage. This puts first time home buyers in partnership with the Government of Canada. Keep in mind, the first-time home buyer will be required to repay the Incentive amount after 25 years OR when the property is sold, whichever comes first. The Incentive can be repaid in full at any time without a pre-payment penalty however, the home buyer will be required to repay the Incentive percentage of the home’s current market value at repayment.

Here’s an example from the First-Time Home Buyer Initiative website:

Anita wants to buy a new home for $400,000 and has saved the minimum required down payment of $20,000 (5% of the purchase price). 

Under the First-Time Home Buyer Incentive, Anita can apply to receive $40,000 in a shared equity mortgage (10% of the cost of a new home) through the program.

This lowers the amount Anita needs to borrow and reduces the monthly expenses.   

As a result, Anita’s mortgage is $228 less a month or $2,736 a year.  

Ten years later, Anita sells the home for $420,000. The Incentive will need to be repaid as a percentage of the home’s current value.

This would result in Anita repaying 10%, or $42,000 at the time of selling the house.

To learn more, click here First-Time Home Buyer Incentive. If you have questions, feel free to call, text or email us to see if this is the right program for you or someone you know.

Of course, given that we are seeing a slow down of inventory on the market, we’d be happy to discuss listing your home now to take advantage of today’s market.

Holly Sansom                                                                                                      Real Estate Professional