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?
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- Victoria Real Estate Market Update – February 2023
A frigid January in the real estate market Consumer confidence remained cool in the real estate market in the first half of January this year with sales quite cold but warming up towards the end of the month. The slowing of interest rate hikes with a modest 1/4 point rise this month coupled with indications … » Learn More about Victoria Real Estate Market Update – February 2023 - Victoria Real Estate Market Update – September
Victoria 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 2022
Not 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
