Greater Victoria Market Update – November 2019

Hello everyone!

Even with the weather shifting to more rainy days, we have been very fortunate to have more crisp, sunny Autumn days than usual. It’s time again for our Monthly Market Update, a service we provide as a courtesy to our loyal clients and contacts.

SALES & INVENTORY

For October 2019, a total of 619 properties sold in the entire region. This is 3.5% more than the 598 properties sold in October 2018 and a 0.5% increase from September 2019. Condominium sales were down 1.1% from October 2018 with 178 units sold while the single family homes sales increased 10% from October 2018 with 318 sold. Overall, we are seeing the same figures as 2018.

We see an increase to the average sale prices across the board in comparison to September 2019. Yet, the average sale price is lower than this time last year.

There is a 5.3% increase in homes on the market compared to October 2018’s 2,510 with 2,643 active listings at the end of October 2019. Our current inventory, even with this increase, is just not enough for buyers to choose from. This puts pressure on home prices in the more desirable neighbourhoods. We are still seeing multiple offer situations when a home is brand new to the market, is move-in ready and is priced properly taking into consideration the current market climate in that home’s neighbourhood and at times, other comparable neighbourhoods. Location, property condition and pricing are the three key areas when considering when and at what price to list your home at.

INTEREST RATES As of October 30, 2019, the Bank of Canada said it projects that the Canadian economy will grow by 1.5 per cent this year, 1.7 per cent in 2020 and 1.8 per cent in 2021. As expected, it maintained its target overnight interest rate at 1.75 per cent that Wednesday.

Here is the October 30, 2019 CBC News article Bank of Canada holds interest rate at 1.75%, wary of global slowdown

According to Mortgage Dashboard, the average 5-year fixed rate available through a broker is now 2.70%. That’s down from an average of 3.12% in January.

What’s in store for 2020-21 Mortgage Renewals? If your mortgage isn’t up for renewal for another year or two, the forecast is that for those renewing in 2020 and 2021 you likely won’t face materially higher rates, so long as mortgage rates remain near current levels.

To learn more go to Canadian Mortgage Trends.

Of course, if you have any questions about the market or what your home or investment property could sell for, we are here to help you!

Holly Sansom

Real Estate Professional

Victoria Property Specialists Group

RE/MAX Camosun