Although 2016 didn’t bring much change to the overall number of homes sold in the Victoria real estate market, this doesn’t mean that everything in the market has stayed the same. Tightening inventory and sharply increasing prices mean that shoppers in Victoria are going to have to deal with a more competitive market going forward, and homes that are available at any kind of a bargain are likely to vanish quickly after they appear on the market.
This is certainly a good reason to not take sales figures as the only indicator of the condition of a local real estate market. Last year in October, 734 homes were sold in the Victoria area. This year, that number only climbed by one home to 735, and yet the overall market conditions are quite different than what Victoria residents were seeing at this time in 2015.
Listings Shortages Causing Problems in Victoria
The belt tightening around the real estate inventory in Victoria is perhaps the most important story in the market at the moment. Last year, at the end of October there were 3,170 homes for sale – which meant plenty of options for those in the market for a new home in the city. However, in 2016 that number nosedived 38.9% to only 1,938 homes available for sale at the end of the month. This creates a much different environment where buyers are going to have fewer options and where they are much more likely to be in competition for a home when they find one that suits their needs.
Pricing Changes Following Inventory Trends
Even though the sales market hasn’t picked up in any notable fashion, the tightening inventory in the city has had its effect on pricing. The average price of a single family home in the Victoria area cost $773,504 in October. This was 10.7% higher than the average price of the same type of property in 2015. Condo prices shot upwards by an even larger margin of 17.7%, landing at a new average sale price of $394,571.
Overall, the real estate market in Victoria offers some challenges to buyers at the moment. With prices rising and inventory lowering, people are going to feel like their choices are getting limited if they want to move home or enter the real estate market at this time. The downward trend in listings started after a peak in summer of 2015, and doesn’t show any signs of letting up just yet.
Vancouver Housing Market
Montreal Housing Market
Regina Housing Market
Winnipeg Housing Market
Edmonton Housing Market
Hamilton Housing Market
Halifax Real Estate Market
Toronto Housing Market
Saskatoon Housing Market
Calgary Housing Market
Victoria Real Estate Market
Windsor Real Estate Market
Mississauga Real Estate Market
Kitchener Real Estate Market