Many Real Estate enthusiast are asking their Realtors how is the market today?
With the new mortgage rules came in to effect October 17th 2016, how did this effect Victoria?
Let’s step back a little and go to the effect date of 15% additional taxes for foreigners in greater Vancouver area.
Victoria was a big target for Vancouver buyers. Vancouverites were selling and cashing out their big investment and invested in a way more bank for their buck in Victoria. Who bought Vancouverites properties? The foreign cash fellow.
Now that the foreign cash flow stopped their focus in Vancouver, Victoria saw the reduction of Vancouver buyers.
On October 17th, many buyers who had under 20% down payment lost their purchase power and their approval interest rate was increased to assure future affordability and risk management in the market. In other word to eliminate the buyers who may default in near future if the market burst.
How did this effect Victoria?
Despite of the loss of this group who were counting on under 20% down payment and becoming a property owner, there yet enough buyers to compete for prime properties in prime location. The major challenge is that there is no inventory exist in the market.
Victoria came into focus for many outsiders during the summer rush. In other words, Victoria just appeared on the map of investors and its barely fading away. Other factor which helps tremendously with attracting Real Estate investors, is our tight and lack of rental availability. This attracts investors to invest further in Real Estate and its rental cash flow response. Condos are one of those attraction for hold properties. If a condo offers no restriction on rental, age and possibly on pets, it has far better chance of dollar value in comparison to the restricted ones.
I found the following article in Check News and found it necessary to share here:
This article is credit to Check News:
It’s the beginning of a new era for this neighbourhood on Upper Fort Street.
Local officials and community members gather for the deconstruction of this building on the corner of Fort and Cook street.
A new 6-storey condo building with 75-units and 9,000 square feet of commercial space will be taking its place.
“It’s a very exciting development” says Victoria’s Mayor Lisa Helps. “Fort Street is on fire right now. There are so many new businesses, lots of tech going on and people need a place to live.”
While real estate prices continue to climb across Vancouver Island, inventory has fallen drastically.
But in the Capital Region, condo development proposals and projects are skyrocketing – along with demand.
According to the Victoria Real Estate Board, condominium sales lead the way for October, up 22% from the previous year.
“We need to refresh the housing stock for the thousands, if not tens of thousands of people who are going to be moving here over the next 30 years” says Helps.
This is the newest condominium project to be built in or near Victoria’s downtown in recent years.
Pre-sales are currently underway and the condo is already 75% sold.
With pre-sale transactions estimated at a record high for 2016, it’s proving to be a successful tactic for attracting buyers who feel frustrated with the current housing supply.
“Right now it’s important for buyers to be sharp, be aware of what’s available and what’s coming” says Mike Miller, President of Abstract Developments. “Be educated, so if and when the right property does come to market, whether it’s a pre-sale or whether it’s a new listing, to be able to react.”
It’s a bittersweet goodbye for the previous owners, but also a promising beginning for the next generation of families who will live on the corner of Fort and Cook."