Greater Victoria’s Real Estate Market Remains Strong
Despite cooling of some regions in the country, the real estate market in Greater Victoria remains strong compared to the rest. Furthermore, the real estate in the region remains a seller’s market, which is the only one in Western Canada. A survey reveals that the place recorded one of the biggest year-to-year drops in sales to listings as it heads to — albeit very gradually — a more balanced market.
It stays as one of the most competitive real estate markets in the country and as mentioned above, the only seller’s market in the west side of the country, among surveyed communities. As of July 2018, Greater Victoria stands at 62 percent, down 12 per from July of last year, based on the Canadian Real Estate Board figures. The drop gives Greater Victoria third place among the markets with the biggest year after year decline.
Greater Vancouver and Fraser Valley lead the list with drops of 15 and 13 percent respectively. Furthermore, both markets now entered a balanced market territory. In particular, British Columbia has weathered significant challenges, as tougher mortgage hindrances compound with speculation taxes and foreign buyer, making steep affordability much more accurate, dampening the home buyer demand.
However, the figure also clearly shows that the market conditions continue favoring sellers. The report identifies three regions in Eastern Canada, namely, Montreal Census Metropolitan Area, Ottawa, London and St. Thomas, as being the most competitive real estate markets to join with ratios of 72, 71 and 78 percent respectively. Of the overall 26 markets surveyed across the country, only one qualifies as a buyer’s market, the Newfoundland and Labrador.
Of the markets remaining, 11 qualify as balanced, and the rest fell into the category of seller’s market. All markets lie in Quebec, Ontario and Atlantic Canada, with the exception of Victoria. As a country, Canada qualifies as a balanced market, based on the survey’s definition. A buyer’s market has a sales-to-new listings ratios, which are between 0 to 39 percent. A balanced market has a ratio that will range from 40 to 60 percent, and a seller’s market with a ratio of 61 percent and more.
A survey reveals that the aggregate price of a home in Greater Victoria increased 5.3 percent every year to $659,685 during the second quarter of this year. However, the figure gleaned from Royal LePage House Price Survey as well as the Market Survey Forecast, which was released earlier this month obscures long-term and short trends, confirming the downward direction of the real estate market scenario in the face of in bigger changes. The same survey found that the aggregate price had grown 10 percent in the first quarter. In other words, price will continue to rise, but at a gradual pace.
The aggregate price figure, representing the weighted average of median values of all the collected housing types, also does not capture considerable variety among different kinds of housing. Victoria is a place where a lot of Canadians like to ‘winter’, but now they’re very much concerned on how the tax would impact them. The slowdown potentially could be read as evidence that the speculation tax, along with other factors is making housing in the place more affordable.
By Hans Ohrstrom & Team