Quick Summary: Sales numbers somewhat improved but activity still low, prices softening a little, and inventory increased slightly.
Hi Everybody, Happy April! Time once again for my Monthly Market Update, provided as a courtesy to all my loyal clients and contacts. Let’s get to it!
Pricing and Activity: The core area (which takes in Victoria, Esquimalt, View Royal, Oak Bay and Saanich) is showing a decrease of about 2.8% year over year. Thebenchmark price of a single family home in the core is $843,600, less than last month’s $845,900 and less than last year’s $867,900 showing the declining pattern continuing. Overall in our entire market area (which takes in the islands, Western communities and over the Malahat) it’s also negative but just very slightly, at about .7% less than a year ago, standing at $741,000, and actually just a bit higher than last month’s $739,500. It’s a statistic. Activity and pricing vary by area and also by type of property. There are more sales of single family homes than any other class so it best represents the activity.
The month of March came in at a total of 640 sales in Greater Victoria, more than February’s 421 (to be expected). Last year in March there were 688 sales. (Those statistics include all property types and all areas covered by the Victoria Real Estate Board.)
The Market: Sorry for the repetition, but the many government taxes and policies continue to have the governments’ desired effect in softening the market, the national mortgage stress test likely having the most significant impact. There are several, including the Foreign Buyer Tax, Vacancy Tax, the Speculation (asset) Tax, and increased interest rates. Despite the many issues affecting our market, we still have very low inventory historically speaking, which typically should buoy prices. As typically happens when the market softens, higher end homes tend to feel the impact more than lower priced ones, and this time with the mortgage stress test affecting mortgage approvals, lower priced homes are seeing good activity. All of this has far reaching implications, to people trying to down size, up size, relocate, buy their first home, or retire.
Inventory is showing a total of 2,435 properties on the market at month end, a bit more than last month’s 2,131. Last year in March it was 1,766 so it has eased somewhat, but not alot. In the last busy market of around 2006 inventory was in the 3,200 range, and in the slowest period of 2012 and 2013 it was over 5,000.
Interest rates A five year fixed term mortgage can be had for around 3.2% if you qualify, depending on your down payment, term, credit history, institution etc. If you’re thinking of moving, take the time to get preapproved before house hunting to make sure everything goes more smoothly.
About the Attached Graphs: Attached you will find a copy of the Benchmark chart of home prices for Victoria by area and also by municipality. Please don’t try to accurately gauge the selling price of a property from this alone as there are very many variables to consider. The average price graph and inventory & sales graphs are attached as well. In the latter at the bottom of the page, the beige bar represents listings, while the blue dotted line represents the number sold. Our market is small, which means the numbers are a small sampling and the figures can be easily skewed by the sale of many homes in either higher or lower price ranges, so the graphs and statistics are best used as a tool to identify trends only. The townhouse and condo graphs should be taken more lightly, as they have many fewer sales than the single family homes. It’s all about trends.
Million dollar plus sales: In March we saw 68 properties sell for a million dollars or more. That number includes four properties that sold for over $2 million, and one that sold for over $3 million. The prior month we saw 48 sell in the higher price ranges. RE/MAX consistently has the largest market share of properties that sold over a million!
If you are thinking about making a move, whether buying or selling, please do call me, or any member of the team! We‘d be happy to discuss it, even if you decide not to proceed. There’s lots to consider, such as timing, competition, pricing, what to do (or not do) to your current home, and what’s available to purchase. We’d be happy to chat or drop by. Our team brings with it several experienced agents with decades of experience for your benefit, and rest assured we’ll always give you our best advice and an honest price estimate. And please do pass our names along to anyone you know who is thinking about making a move. Our business grows through personal referrals andwe appreciate your trust in referring us to friends. You may feel reluctant to get involved but it’s better to help your friends by providing them with the name of a trusted and knowledgeable professional than for them to venture out looking on their own.
Click here to view the Official News Release from the Victoria Real Estate Board, along with more information and all sorts of statistics.
You’ll find my web page is now forwarded to www.vpsg.ca. Contact me, or any one of the team members there. My cell number however, will never change.
Y Jenny Stoltz