How Victoria’s Real Estate Market is Shaping Up This Summer

There are more active listings than this time last year, about 20 per cent more, yet the number of homes sold in June is 25 per cent fewer than June last year. The biggest reason rest with the changes in mortgage qualification rules. They have reduced buyer’s purchasing power.  We also have a lot more competition for any home listed at a lower price because there are a third less homes listed under $750,000 this year over last due to rising real estate prices.

On the higher end of the market, there are at least 50 per cent more $1.5 million plus houses listed. The new and potential taxes from the provincial government are putting pressure on some high value home owners to sell. The provincial taxes include the Foreign Buyer Property Transfer Tax, the increased School Tax and the potential Speculation Tax.

"You may find more flexibility if you are shopping for a multi-million-dollar estate in certain areas,” says the VREB (Victoria Real Estate Board) President Kyle Kerr. However, “you may be in for a competition if you're shopping for a lower priced home or condominium.”

The MLS® (Multiple Listing Service®) HPI (Home Price Index) benchmark value for a single-family home in the Victoria Core increased by 7 per cent over last year from $820,800 to $878,100. The MLS® HPI benchmark value for a condominium in the Victoria Core area increased by 15.7 per cent over last year from $426,900 to $493,900.

If you're thinking of buying or selling, give me a call. I can advise you on your local market and help you devise the best strategies to win.