Greater Victoria Market Update – December 2019

HAPPY NEW YEAR!

With the holiday season behind us and a new year ahead of us, things are gearing up for the 2020 market. The BC Assessments are in the mail for nearly 2 million homeowners in British Columbia. Tina Ireland, an assessor with BC Assessment states, “I would suggest that the significant increases that we have generally seen in the past are just that – they are a thing of the past. We have really seen moderate changes this year, and even some decline in value. So I’d suggest that we are returning to a more stable and balanced market.”

Where prices are rising is in the condominium market. With the Speculation Tax and now, the recent news of strata corporations across BC seeing large increases in their insurance rates and deductibles, 2020 may be the year to consider selling if you own a condo.

If you’ve been thinking of selling, we offer complementary Market Evaluations. See how your BC Assessed value compares to the Market Value!

DECEMBER 2019 & 2019 IN REVIEW

A total of 402 properties sold in the Victoria Real Estate Board region this December, 7.2 per cent more than the 375 properties sold in December 2018 and a 30.3 per cent decrease from November 2019. Sales of condominiums were up 17.5 per cent from December 2018 with 121 units sold. Sales of single family homes increased 13.8 per cent from December 2018 with 198 sold.

A grand total of 7,255 properties sold over the course of 2019, 1.47 percent more than the 7,150 that sold in 2018. 2019 sales came in at slightly under the ten-year average of 7,413 properties sold.

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in December 2018 was $860,400. The benchmark value for the same home in December 2019 decreased by 0.6 per cent to $855,000, slightly less than November’s value of $855,400. The MLS® HPI benchmark value for a condominium in the Victoria Core area in December.

INTEREST RATES:  A five-year fixed term mortgage can be had for around 2.74% if you qualify, depending on your down payment, term, credit history, institution etc.  Rates have been coming down little by little.  That’s a very good rate, historically speaking.  If you’re thinking of moving, take the time to get preapproved to make sure everything goes more smoothly.  Don’t know a Mortgage Broker? Click HERE to send us an email and we’ll forward on a list of reputable Mortgage Specialists.

WHAT DOES THE MARKET LOOK LIKE FOR 2020 IN BC? The Western Investor published their B.C. residential real estate outlook 2020 on December 17th. the B.C. Real Estate Association (BCREA) predicts that MLS residential sales across the province will increase 10.9 per cent to 85,500 units in 2020, which would take the annual total to just below the 10-year annual average of 85,800 units. Greater Vancouver residential transactions are predicted to increase by 18.2 per cent in 2020, compared with 2019, and Fraser Valley sales are forecast to go up 12.4 per cent next year. In comparison, Victoria’s resale transactions are expected to rise a more modest four per cent in 2020.

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

250-857-3477