Creating More Rental Spaces in Victoria

The NDP introduced amendments to legislation which will provide municipal governments stronger zoning tools to protect and improve the supply of rental properties. It will allow them to ensure existing rental properties cannot be redeveloped for other uses. Undeveloped land zoned for rental will be used for rental homes.

That's welcome news for Victoria Mayor Lisa Helps. She points out there are 10,000 rental buildings from the 1960s in Victoria that require some form of updating, including seismic work. She and the Victoria council are interested in seeing this work progress as a measure to alleviate a vacancy rate well below one percent.

“We're definitely looking at incentives for developers,'' she said.

Victoria council has been working to increase rental stock in the city. In March, they passed a bylaw to allow condos, duplexes, townhouses, secondary suites, and garden suites to offer short-term rentals of up to 2 bedrooms in their principle residences. Even renters can engage in short-term rentals, as long as they have their landlord’s permission.

Offering rental space in your home is an excellent mortgage helper. Talk to me about purchasing a property with short-term rental potential and I’ll make sure you’re fully informed about what you need to know before you buy your home.

BC Government Legislating Measures Designed to Control Home Prices and Increase Rental Vacancy

Recent legislation introduced by the BC Government will require builders to collect and report their buyer's information on the purchase and sale of condos before they are built. The NDP are putting this practice into place because they are concerned speculators are making purchases, riding out the equity increases while the property is being built, then selling them at a profit without ever living in them or reporting any of the capital gains.

“This is a key step to stopping people from using presale condos as a quick, lucrative investment,'' says Carol James. ``It's also to stop them from driving prices up for British Columbians trying to get into the housing market.''

This legislation would force the reporting of the condo flips and allow the government to collect the tax.

The NDP also introduced amending legislation to give municipal governments stronger zoning tools to protect and improve the supply of rental properties. It will allow them to ensure existing rental properties cannot be redeveloped for other uses. Undeveloped land zoned for rental will be used for rental homes.

Other steps the provincial government recently took include the introduction of a speculation tax on vacant homes to encourage rentals, increased foreign buyers tax on property sales and the creation of a housing hub program to link non-profit and faith groups with property to developers to build affordable housing.

More Homes Selling as Spring Arrives

The number of homes sold in March is up from February in over half of all local housing markets, led by Ottawa and Montreal. Monthly sales gains were offset by declines in B.C.'s Lower Mainland, the Okanagan Region, Chilliwack, Calgary and Edmonton. 

While a national snapshot is interesting as a backdrop for our local market, and you can read more through the link. Here in Victoria, the number of homes sold over last month rose 26.2 per cent as 688 properties sold in the Victoria Real Estate Board region.

It's certainly fewer than last year - 25.9 per cent down from the 929 homes sold last March. That's likely due to the federal government's new mortgage qualification rules combined with rising interest rates.

While there are outside pressures on the market and demand has lessened somewhat, supply is still tight, and spring is an excellent time to sell your home.

March 2018 Greater Victoria real Estate Market Review

Home buyers are looking at increasing interest rates combined with the mortgage stress test. And while these factors have constrained the market somewhat, Greater Victoria’s continuing historical low inventory levels means demand is still outpacing supply.

The Multiple Listing Service® Home Price Index benchmark value for a single-family home in the Victoria Core is now $840,300, up 9 per cent from last year, February 2017, when it was 771,100. The MLS® HPI benchmark value for condominiums in the Victoria Core area is now $472,500, up 19.85 per cent from last year, February 2017.

There was a total of 1,545 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of February 2018. Of that, there were 455 active listings for single-family homes which resulted in 226 sales. In comparison, we saw 243 active listings for condominiums which resulted in 174 sales.

Over the past year, more families and professionals have turned to condominiums as the more affordable and accessible real estate option. Another population segment are seniors who are downsizing from larger homes to simplify their lifestyles and their living space.