Monthly Market Update

Hello again, 

Here is a Victoria real estate market update for the month of May.

Home sales remained steady but subdued throughout April with 739 residential units sold compared to 656 during March. This represents a drop from last year’s numbers for April of 846 residential units sold. 


 
 


Despite a relatively slow-moving market, prices remain on a trend of gradual increase. Historically spring is the busiest season for real estate in Victoria, so we might see activity increase as we move toward summer.   Interestingly, over the past month I have noticed certain areas in Greater Victoria seem hotter than the city average with properties consistently selling well over listing price. Specifically, the Gorge-Tillicum area has been a remarkably hot market with single family detached properties fetching premium dollar. For instance, take a look at this listing that sold $101,000 over asking:

 
 


Below I have assembled a number of Canadian real estate news stories from last month that caught my eye:




As always, if you are interested in learning how the current market conditions affect you or your investments, would like a market analysis of your property, or if we can be of assistance in any way at all, please don’t hesitate to give us a call (250-886-8520) or send us an email (info@island-homes.ca).

Sincerely,


Agustin Torres
Island Homes Group
250-886-8520
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Hello all,

 

I hope that everyone had an excellent Easter weekend!

 

Here is a new market update for the month of April.

 

Total sales in Greater Victoria during March bounced back 26% from the previous month of February: 688 versus 545. However, this still represents a substantial drop from the total number of units sold during March of 2017: 929 units. This lower volume of sales can be seen as arising from a substantially decreased inventory of available properties currently on the market. This phenomenon is in line with a national trend seen in most metropolitan areas throughout the country. Despite decreased inventory, sale prices remain solid and few economists predict a significant decrease in pricing in the short term.

 

 

 

 

 

Here in BC, controversy has been generated through the introduction of a new tax that attempts to target property speculators and those who own non-primary residences. Below I have compiled a number of articles that discuss the tax’s introduction, possible implications, and the resulting push back from certain communities and industries.
 
B.C. speculation tax: Here's what you need to know
 
 
 
 
 
 
 
That’s it for this time! I hope you all have an excellent month!
 
As always, if you are interested in learning how the current market conditions affect you or your investments, would like a market analysis of your property, or if we can be of assistance in any way at all, please don’t hesitate to give us a call (250-886-8520) or send us an email (info@island-homes.ca).
 
Sincerely,
 
 
Agustin Torres
Island Homes Group
250-886-8520
4440 Chatterton Way
Victoria BC
V8X5J2
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 March Market Update

 

Hello everyone,

 

We hope you all had an excellent February and are looking forward to spring as the weather takes a turn for the better.

 

Here is another monthly real estate market update:

 

February saw the market continue at a low inventory level coupled with cautious buyers influenced by new interest rates and mortgage stress test requirements. Despite this conservatism, selling prices remained solid. For instance, during February the average sale price for a single family detached home in Greater Victoria was $876,397 compared to $852,111 in February 2017; but, the total number of sales for all residential properties was 519 units compared to 635 units last February. In Greater Victoria decreasing inventory has been the been the trend since early 2016—a period coinciding with a steady increase in sale prices. Below I have included two graphs that demonstrate this dynamic(Source VREB.org).

 

 

 

 

 

 Below we have included a few real estate stories that caught our eye last month:

 

 

Toronto condo owner discovers unit listed on Airbnb behind her back — with more than 70 reviews

 

 Real estate industry casts doubt on B.C.'s housing affordability plan

 

 Low prices, higher cap rates draw developers to Vancouver Island

 

 Benchmark price for home rises to $840,300 in core Victoria

 

 Home prices rise on gains in Vancouver, Victoria

 

 

As always, if you are interested in learning how the current market conditions affect you or your investments, would like a market analysis of your property, or if we can be of assistance in any way at all, please don’t hesitate to give us a call (250-886-8520) or send us an email (info@island-homes.ca).

 

Sincerely,

 

Island Homes Group

info@island-homes.ca

facebook.com/islandhomesgroup/

250-886-8520

4440 Chatterton Way

Victoria BC

V8X5J2

 

 

 

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Happy new year!

 

We hope you all had an excellent 2017. Here at Island Homes Group, we had a fantastic and productive year. 

 

Here is a market update to bring you all up to speed for the new year.

 

During December 2017, 426 residential sales took place in Greater Victoria. This represented a drop from 628 units sold during November. However, a December drop in sales fits a regular pattern for home sales during previous winters (428 units sold in December 2016). Below you will find a chart of benchmark prices for different regions in Greater Victoria and beyond that illustrates comparative growth in single-family home price by region over the past 60 months.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three of the larger stories in local real estate last month were the introduction of the new mortgage stress test rules, assessment values, and the continued strength of the BC market.

 

Beginning January 1, the Office of the Superintendent of Financial Institutions implemented new rules for home buyers requiring that they be able to withstand either a rate increase of two percentage points higher than the mortgage they have been granted or the five-year posted rate (currently 4.99%). Moving forward, this rule could keep some new buyers out of the market and mean that other buyers purchase less expensive properties than they previously would have. However, many economists doubt the new rule will negatively affect what remains a historically strong market.

 

BC Assessment has released its figures for property values throughout the province, with values in Greater Victoria and the rest of Vancouver Island reaching historic highs. The British Columbia government has responded to these high values by increasing the qualification threshold for BC Home Owner Grants. This increase is geared to ensure that home owners who saw substantial rises in their home’s value are not excluded from the program. Additionally, home owners who disagree with the assessed value of their home have until the end of the month to dispute their assessment with the agency. However, experts recommend that one fully understand the assessment process and how their property figures into it before beginning the process. 

 

For the coming year, economists are predicting that their will be fewer home sales than 2017 or 2016, but that prices will continue to rise in what remains a stable market.  A main factor in British Columbia’s (and Canada as a whole’s) sustained property values continues to be British Columbia’s stature as a premier location for real estate investment and general desirability for residents.

 

That’s it for this month. We hope you all had an excellent holiday season and are excited for the new year!

 

As always, if you are interested in learning how the current market conditions affect you or your investments, would like a market analysis of your property, or if we can be of assistance in any way at all, please don’t hesitate to give us a call (250-886-8520) or send us an email (info@island-homes.ca).

 

Sincerely,

 

Island Homes Group

info@island-homes.ca

facebook.com/islandhomesgroup/

250-886-8520

4440 Chatterton Way

Victoria BC

 

V8X5J2

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Hello! Here is a market update for December.

November’s residential sales totaled 628, very near October’s total sales of 633. However, the average price of a single family home in Greater Victoria raised from $854,833 in October to $902,985 in November. 

 

 

Below I have included a chart of benchmark values for single family homes in Greater Victoria that covering the past 12 years to give you a sense of the market's growth. 



 

We recently received our order for 2018 calendars, which this year showcases classic cars. Let us know if you would like to receive it and we would be happy to mail you one! Also, if you have already received one and would rather not in the the future let us know as well.


Below you will find a few news links that I found interesting last month:




Have a fantastic month!

As always, if you are interested in learning how the current market conditions affect you or your investments, would like a market analysis of your property, or if we can be of assistance in any way at all, please don’t hesitate to give us a call (250-886-8520) or send us an email (info@island-homes.ca).

Sincerely,

Island Homes Group

 

 

 

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November Market Update

 

Hello again, everyone. Here is a market update for November 2017.

 

In October real estate sales experienced a slight up-tick from September (664 sales from 640), continuing a pattern of lowered sales numbers when compared to last year (735 sales in October 2016). Despite a slower market, average home prices continued to rise during the last year with the average price of a single family dwelling moving from $773,504 in October 2016 to $854,833.

 

Victoria Real Estate Board President Ara Balabanian is forecasting market stability in the coming months, with the provision that the new mortgage stress tests could give some buyers a sense of urgency:

 

In the coming months we expect to see less inventory on the market, because the year end changes buyer and seller behaviours, their focus shifts to holidays and winter weather. One unknown influence that may play on the winter market is the upcoming mortgage stress test. Some buyers may move their purchasing timelines forward to make their home purchases before the stress test on uninsured buyers (those with a down payment of 20 per cent or more) becomes required January 1.” (VREB.org)

 

So, what about the introduction of the mortgage stress test? The Office of the Superintendent of Financial Institutions’ new rules extend a stress test that was already in place for high risk mortgages to lower risk ones. Under the B-20 guidelines, uninsured borrowers will have to prove that they can withstand either a 2% rate increase on their mortgage or payments at the five-year average rate, whichever is greater. At the moment any buyer with a down payment of 20% or more is not required to buy mortgage insurance. Although the new rules officially come into effect January 1st, expect some federally regulated lenders to impose them before then. Practically speaking, this new rule could force buyers into a lower price range than they might previously have been qualified for, and squeeze out some buyers altogether. A mortgage broker we often work with has stated that some buyers who previously would qualify for an $800,000 mortgage might be downgraded to one at $600,000. Also, the market could heat up during November and December as buyers try to maximize their purchase power and sellers, especially those of more expensive properties, try to capitalize on a larger buyer pool.

 

As always, if you are interested in learning how the current market conditions affect you or your investments, would like a market analysis of your property, or if we can be of assistance in any way at all, please don’t hesitate to give us a call (250-886-8520) or send us an email (info@island-homes.ca).

 

Sincerely,

 

 

Island Homes Group

info@island-homes.ca

facebook.com/islandhomesgroup/

250-886-8520

4440 Chatterton Way

Victoria BC

 

V8X5J2

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Hello! We hope you all had an excellent September. Here is another monthly update:

The month of September saw real estate sales in Victoria slow slightly with 640 units sold in total, down from 736 during August. Moreover, the 640 units sold in September 2017 is also a slight drop from sales during September 2016 during which time 781 units were sold in Greater Victoria.


 

 




 

 

On Sunday, September 24th Island Homes Group hosted a fundraiser for Liam Comboye, a young boy in a battle against diffuse intrinsic pontine gliomas (DIPG), and for BC Children's Hospital. The event featured inflatable games and face painting provided by Games2U, and food and drinks courtesy of Save-on-Foods. We were overjoyed with the large turnout to Centennial Park for the fundraiser and would like to thank all of you who were able to attend. We would especially like to offer our sincerest gratitude to all of you who went the extra mile and gave so generously with your donations—your kindness made the event a huge success. 


 


Below you will find a selection of real estate related news stories that have recently piqued our interest:


"Chinese Warn The Dangers Of Buying Canadian Real Estate… Like Raccoons And Bears"
 

 
 
 

 

We hope you all have a fantastic October and a spooky Halloween!

As always, if you are interested in learning how the current market conditions affect you or your investments, would like a market analysis of your property, or if we can be of assistance in any way at all, please don’t hesitate to give us a call (250-886-8520) or send us an email (info@island-homes.ca).

Sincerely,

Island Homes Group


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Hello again. Here is another update on the Victoria real estate market. 

 

There has been a lot of news recently about the interest rate hike from 0.5% to 0.75% that was issued by the Bank of Canada on July 12th: the first of its kind in seven years. Many financial experts are saying that rates will inevitability continue to rise; however, the Bank of Canada has stated that further increases will be in reaction to economic realities that are still unknown. It has scheduled its next decision on interest rates for September 6th.

 

The extent to which the rate hike will affect the Canadian housing market is still unknown. Lots of reporting suggests it will result in a cooling of the market—however, it is possible that many buyers may react to the rate hike and perceived cooling in the market and decide it is the right time to purchase.

 

For the month of June, Canadian home sales dropped 6.7% from May, the largest decline since June 2010.

 

Despite this national trend, in Victoria home sales stayed solid with 1008 residential units sold in the month of June compared to 1006 units in May.

 

In many ways Victoria remains a unique and desirable market for real estate. It’s status as provincial capital with an abundance of government employment, the naval presence at CFB Esquimalt, its diverse economy and growing tech industry, and its status as a desired retirement destination for retirees from throughout Canada are some of the factors that help to insulate Victoria from some whims of the greater Canadian market. Additionally, the lack of a foreign buyers tax in Victoria may be encouraging spillover from wealthy foreign investors looking for an alternative to Vancouver or farther eastern destinations such as Toronto and, the increasingly popular, Montreal.

 

As always, if you are interested in learning how the current market conditions affect you or your real estate investments, would like a market analysis of your property, or if we can be of assistance in any way at all, please don’t hesitate to give us a call (250-886-8520), send us an email (info@island-homes.ca), or drop by our Facebook page to say hello.

 

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