What is happening in Victoria Real Estate? This is a frequently asked questions from all sort of Real Estate enthusiast; Sellers, buyers who want to enter the market for the first time, buyers who want to invest, buyers from outside of Victoria.
Victoria went through the hottest market in the last year. the Bench mark house prices in prime areas according to RPI, jumped from the beginning of 2016 for approximate average number of 30%-35%. This was not a small jump. This change placed Victoria in the map focus of investors.
With our under 1% availability in rental, it also attract many investors to buy and rent properties.
despite of losing many Vancouverites (as the 15% foreign tax hit) and the mortgage rule change for buyers placing under 20%, the market in Victoria tend to stay solid and strong. Main cause? lack of inventory and availability of houses, condo and townhomes for sale in Victoria prime locations. And yet if one becomes avaialble, it goes through multiple interest and offers.
Lets go back to 15% increase in foreign buyers in greater Vancouver. It might have slowed down Vancouver market, but the prces are still hiking and sales continue.
Lets discover what Victoria Real Estate Board of Realtors statistic show for November of 2016:
Credit to VREB:
A total of 599 properties sold in the Victoria Real Estate Board region this November, 4.5 per cent more than the 573 properties sold in November last year.
Inventory levels remain lower than last year, with 1,815 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of November 2016, 38.5 per cent fewer than the 2,952 active listings at the end of November 2015.
"Our current housing market is in a strong cycle due to many factors, including our current positive economic conditions, baby boomers retiring here, millennial buying cycles, a low Canadian dollar keeping folks closer to home and our favourable living conditions," notes Mike Nugent, 2016 President of the Board. "These factors and others, in combination with ongoing low inventory mean demand for housing is up, particularly in those areas close to the core and amenities."
The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in November 2015 was $608,600. The benchmark value for the same home in November 2016 has increased by 23.9 per cent to $753,800.
"Foreign buyers are another factor that affects our local housing market. The provincial government is considering implementation of a local tax on foreign buyers to ensure pressure on pricing from that source remains mitigated," adds President Nugent. "While October data shows an increase in foreign buyers into the Capital Regional District compared to previous months, their 6.3 per cent of property transfers indicate that these buyers are one factor in the marketplace. A much larger factor affecting affordability and availability right now is the lack of inventory. An effective method to address housing affordability issues could be through efforts to increase the supply of housing, either through adjustments to zoning or density."
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