2016 was a year of record-shattering growth in the Victoria real estate market, a jewel in the wider world of British Columbia real estate. This could be great news if you’re on the right side of the trend, but for the general population a more balanced real estate market tends to represent the ideal situation. In Victoria, market conditions are bouncing back from a highly volatile year to reach a more balanced state. This reestablishment of equilibrium is of course accompanied by some shifts in market statistics, something that was certainly observed this April.
The overall sales figures are the clearest sign that balance is being restored to the Victoria real estate market. This April, there were 885 homes sold in the Victoria area. This 31.2% drop-off when compared to last year’s statistics might seem like a dramatic decrease; however, it is still significantly more than the ten-year average of 772 homes. This demonstrates a market that is still strong, just not racing to the peaks seen last year.
Prices Still on the Rise
Despite certain factors balancing out in the market, prices continue to climb in the greater Victoria area. The average price of a single family home in Victoria was $833,853 last month. This figure climbed 10.3% compared to the same month last year. However, in a slight deviation from normal patterns, average pricing did drop 1.5% between March and April this year.
The pricing of Victoria condos grew even faster than the Victoria single-family homes segment did. The year-over-year uptick in condo pricing was 19.8%, landing at a new average price of $405,232. Certain areas, such as Victoria West, Oak Bay, and Sidney, had the hottest condo market growth, with each of the aforementioned neighborhoods seeing the benchmark condo price increase by more than $100,000 compared to last year.
Listings Starting to Bounce Back, but the Shift is Slow
After a year of extreme sales activity, the overall number of listings available in the Victoria area is extremely low. The 1,690 homes available for sale as of the end of April 2017 was 34.8% lower than in 2016. However, the month-to-month trends appear to show listings bouncing back. The slowdown in sales activity resulted in 8.6% more homes being available for sale at the end of April than at the end of March – a trend that, if it continues, will help to stabilize the overall market.
Victoria is just emerging from a period of intense volatility and extreme activity on the real estate market. However, the pattern has not become established enough yet to exert any downward force on pricing. Until inventory levels stabilize at a higher level, the average price of real estate in Victoria is likely to continue to rise.
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