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

Post CommentComments: 0Read Full Story

 

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


Post CommentComments: 0Read Full Story

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.

 

Post CommentComments: 0Read Full Story