Once again the Real Estate story remains with tight supply restricting sales. The Sales-to Active Listings ratio for October was a hair under 72% with 745 properties changing hands and just 1036 active listings at month-end. This is roughly 50% of the active listings from the previous year. This remains a great time to sell but a very challenging time to buy, with prices climbing and well priced homes seeing multiple offers, often without many subject conditions. The provincial government has tabled legislation that will allow for a cooling off period for buyers, similar to that in new construction. This is slated to come into effect in the spring and is meant to allow buyers time to reflect on their decision however, like previous attempts by the provincial government to cool the real estate market (speculation tax, foreign buyers tax) this is not likely to curb demand or supply issues. If anything it could have the opposite effect, allowing people to gamble without pause for consequences, and to make bigger bets.
The solution for the current housing crisis is, and remains, increased supply. Unfortunately the speed at which municipalities approve redevelopments which would increase that supply, and thus reduce pressure on pricing and demand, is a notoriously slow pace. Coupled with the prevailing NIMBY attitude people in many neighbourhoods have, (currently living on old forest land, or farm land that was densified to allow them to have a place to live…) means we are unlikely to see a relaxation on demand, or prices in the foreseeable future. The New Zealand federal government has moved to ban single family zoning in some of their most populous cities, taking the power away from the municipalities and the NIMBYs. Perhaps this is the solution we need?
Have a question or just want to chat about real estate? Get in touch via the form below!
9760 Glynnwood Park Rd North Saanich, British Columbia
5 Beds 2 Baths 2,805 SqFt 0.610 Acres
- Victoria Real Estate Market Update – SeptemberVictoria Real Estate Market Update | Average Home $1.27M. The benchmark price for a home in Greater Victoria area was down 2.9% to $1,391,700 from July’s value of $1,433,400.
- Real Estate Victoria | Market Update – July 2022Not surprisingly the slowdown in the real estate market in Victoria continued with the Sales-to-Active Listings ratio down to 29.7% at the end of last month. This represents another 10% drop in sales over inventory month over month and the move back towards a balanced market. As this is a bit of a trailing indicator … » Learn More about Real Estate Victoria | Market Update – July 2022
- Victoria Real Estate Market Update – June 2022The shift towards a balanced market continues. In May we saw the effect of the Fed’s (Bank of Canada) interest rate hikes and the uncertainty in the economy as a whole. Although the economy continues to show great strength here combined with low unemployment, inflation and the fears associated with it are putting a long … » Learn More about Victoria Real Estate Market Update – June 2022