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Continued uncertainty brings predictable results for the Victoria real estate market

A total of 708 properties sold in the Victoria Real Estate Board region this June, 29.8 per cent fewer than the 1,008 properties sold in June of last year, and a 6.2 per cent decrease from May 2018. The sales of condominiums were down 25.1 per cent from last year in June with 230 units sold. Sales of single family homes were down 34.7 per cent from 2017 with 357 sold this June.

“June typically signals the conclusion of the busy spring market, and activity lightens into the summer,” says Victoria Real Estate Board President Kyle Kerr. “However, because of decelerating growth due to aggressive government implementation of policies to reduce demand, Victoria’s real estate market has been hobbled since the start of the year when federal restrictions around mortgage qualifications were rolled out. Even demand side measures that are not yet live, like the Vancouver/Kelowna/Nanaimo/Victoria-specific Speculation Tax, are dragging the market down as many consumers stand aside to watch what happens.”

There were a total of 2,595 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of June 2018, an increase of 8.4 per cent compared to the month of May and 35.5 per cent more than the 1,915 active listings for sale at the end of June 2017.

“The good news is that inventory is slowly being added to the market, though we are still very far off from our ten year average inventory level of 4,100 listings” adds President Kerr. “The slower pace of the market has created more time for buyers who may have been hesitant to jump in during the high pressure market conditions of recent years
. Homes are spending a bit longer on the market and there are fewer multiple offer situations than in the past, and if we see more listings over the next few months we may be heading back into a more balanced market situation. Every type and location of property is a separate segment of our market, and there are varying pressures and demands, so if you are buying or selling it is wise to take advantage of the services of your local REALTOR® to help navigate this changing market.”

Complete stats package here.
Article from VREB.org

Six top landlord cities for 2018 – Victoria Number One!

With an overall vacancy rate of 3 per cent nationally, Canada’s rental markets can present opportunities for investors in smaller B.C. regions and across the Prairies – with a few notable exceptions.
In B.C., urban areas and suburbs in close proximity to downtown Vancouver tend to trend below 1 per cent vacancies. Though pricey, demand in cities like Burnaby and East Vancouver provide landlords with a steady source of income and potential for an increase in property value.
Kelowna and New Westminster per-door prices are relatively cheaper than Burnaby and East Vancouver and offer higher cap rates for mid-range investors, while Winnipeg offers prospective landlords a chance to enter the Prairie’s most secure economy.
Here are Western Investor’s six picks for the best landlord markets in Western Investor in 2018:

1. Victoria

Rental vacancy rate: 0.7 per cent

Average one-bedroom rent: $1,070

Average price per door: $215,000

Victoria’s rental market vacancy is less than 1 per cent, and is forecast by Canada Mortgage and Housing Corp. to remain tight throughout 2018. Though capitalization rates remain among the lowest in B.C., rents trend are slightly lower than that of most Vancouver neighbourhoods.
Rental vacancy is even slighter in Vancouver Island’s most populous area of Saanich, just north of Victoria, at 0.5 per cent per cent.
Colliers International places the average price per rental suite at $215,000 and rising.

2. Winnipeg

Rental vacancy rate: 2.8 per cent

Average one-bedroom rental: $845

Average price per door: $100,000

Winnipeg’s rental vacancy rate was remained unchanged at 2.8 per cent in 2017 – lowest on the Prairies – according to Canada Mortgage and Housing Corporation. “Winnipeg’s vacancy rate holds steady as increasing supply was offset by growing demand,” the corporation noted. “Strong migration figures have put downward pressure on the vacancy rate.”
Unlike other Prairie cities, Winnipeg’s labour market isn’t as affected by the oil recession. Positive labour market conditions and an increase in employment in 2017 have kept rental demand strong.
With capitalization rates in a healthy 5.5 per cent range and the average city apartment building selling for just above $100,000 per door, Manitoba’s capital offers the best landlord potential on the Prairies, despite a rush of new rental construction in 2017 that added nearly 2,000 new units to the market.

3. Kelowna

Rental vacancy rate: 0.2 per cent

Average one-bedroom rent: $1,150

Average price per door: $135,000

Kelowna has been lauded as a top-tier investment destination and the city’s multi-family market is no exception. The city’s tech sector is now accounting for $1.3 billion in revenue and playing host to more than 200 companies. The region’s active tourism sector also drives short-term rental popularity through the summer.
The rental vacancy, now at 0.2 per cent, may inch up slightly next year as new developments by JV Development Group and Mission Group add rental supply to the market. Approximately 1,150 new purpose-built rental apartments started in 2017, up almost 140 per cent over 2016.
Kelowna’s Rental Housing Grants program provides up to $320,000 in annual grants for purpose-built rental housing projects.
Based on recent Kelowna apartment building sales, prices are from $105,000 to $166,000 per door and capitalization rates are in the 4.5 per cent to 6 per cent range.

4. New Westminster

Rental vacancy rate: 1.1 per cent

Average one-bedroom rental: $1,330

Average price per door: $288,474

With SkyTrain stations and new Evergreen line access to the Tri-Cities, the Royal City is gaining traction as Metro Vancouver’s “other” downtown. It also has a growing economy, fired by a $1 billion expansion of medical facilities at Royal Columbian Hospital, a booming brewery district anchored by Translink headquarters.
The Real Estate Investment Network recently named New Westminster as one of the top 10 B.C. cities for investment, ranking it No.18 out of 19 for lowest-priced real estate in the Metro Vancouver region.
The average per suite value based on recent sales is estimated at $288,474 by the Goodman Report team at HQ Commercial – the lowest of any municipality north of the Fraser River.

5. East Vancouver

Rental vacancy rate: 0.3 per cent

Average one-bedroom rent: $1,460

Average price per door: $390,349

East Vancouver is Metro’s most in-demand rental market. Mount Pleasant’s burgeoning tech scene, new Emily Carr University of Art and Design campus and proximity to downtown Vancouver is continuing to drive demand at a pace that outpaces supply. The vacancy rate sits at 0.3 per cent, lowest in the Metro region.
Per-suite value for East Vancouver apartment buildings is $390,349, according to HQ Commercial, which noted that this is well below the City of Vancouver average of $556,413.

6. Burnaby

Rental vacancy rate: 0.6 per cent

Average one-bedroom rent: $1,380

Average price per door: $332,132

Burnaby’s multi-family market is booming, with major development projects centred on The Amazing Brentwood and Lougheed Town Centre SkyTrain stations. CMHC places the city’s rental vacancy rate at 0.6 per cent – less than that of Vancouver’s. A breakneck development pace in the Metrotown area has driven up per-suite values 66 per cent from $332,132 in 2016 to $551,227 in 2018. The steep price of entering the Burnaby market is partially offset by high returns, thanks to Burnaby having the third-highest rent in Canada, according to PadMapper. Total dollar volume from Burnaby apartment sales in 2017 exceeded $260 million, more than any other Lower Mainland municipality, according to HQ Commercial.

 

Article by Tanya Commisso for Western Investor.

Price Pressure Continues on Lower-Priced Housing in the Capital Regional District

A total of 755 properties sold in the Victoria Real Estate Board region this May, 25 per cent fewer than the 1,006 properties sold in May of last year, and a 2.5 per cent decrease from April 2018. The sales of condominiums were down 17.4 per cent from last year in May with 237 units sold. Sales of single family homes were down 23 per cent from 2017 with 406 sold this May.

“It’s no surprise that our current market is very different than it was last year,” says Victoria Real Estate Board President Kyle Kerr. “Due to recent changes in mortgage qualification rules, many buyers’ purchasing power has been reduced. Unfortunately, in our area we have one third fewer single family homes for sale under $750,000 when compared to last year, so we’re seeing pressure from increased competition on a smaller number of homes, which is really pushing the under million dollar market. We have a much larger inventory of higher value homes this year. For listings priced at $1.5 million and above, the number of active listings is almost 50% higher than last year at this time. Arguably, many of these properties may be listed due to new and incoming taxes from the provincial government. The Foreign Buyer Property Transfer Tax, the Speculation Tax, and the increased School Tax are putting pressure on those high value home owners. Unfortunately, these taxes are not resulting in what the government said it intends – to increase the availability of affordable housing.”

There were a total of 2,394 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of May 2018, an increase of 19.6 per cent compared to the month of April and 26.3 per cent more than the 1,896 active listings for sale at the end of May 2017.

“We’re in an interesting time here – we are seeing different levels of price pressure and price relief in micro-climates of our area,” adds President Kerr. “You may find more flexibility if you are shopping for a multi-million dollar estate in certain areas. You may be in for a competition if you’re shopping for a lower priced home or condominium. If you’re thinking of buying or selling, it’s a good idea to meet with a local REALTOR® to understand how the current environment will affect you.”

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in May 2017 was $820,800, while the benchmark value for the same home in May 2018 increased by 7 per cent to $878,100, higher than April’s value of $866,700. The MLS® HPI benchmark value for a condominium in the Victoria Core area in May 2017 was $426,900, while the benchmark value for the same condominium in May 2018 increased by 15.7 per cent to $493,900, slightly lower than April’s value of $495,100.

Complete stats package here.

Slower start to spring does not signal lower prices for Victoria real estate market

A total of 774 properties sold in the Victoria Real Estate Board region this April, 12.5 per cent fewer than the 885 properties sold in April last year, but a 12.5 per cent increase from the month previous. The sales of condominiums were down 21.6 per cent from last year in April with 225 units sold. Single family homes were 8.1 per cent down from the year previous with 420 sold this April.

“We’re now into the spring real estate market, which is traditionally the busiest time of the year for buying and selling homes,” says Victoria Real Estate Board President Kyle Kerr. “Last year, the months of May and June were the busiest, so we may see this pattern again but on a slightly smaller scale than last year, since our sales for the year thus far are down about 18 per cent when compared to 2017. Although January to March was quite far behind last year’s pace, we may see that margin get smaller as we progress through the spring months and people adjust to the new mortgage qualifying rules.” Continue reading

Outside Influences Impact Spring Real Estate Market in Victoria

Outside Influences Impact Spring Real Estate Market in Victoria

A total of 688 properties sold in the Victoria Real Estate Board region this March, 25.9 per cent fewer than the 929 properties sold in March last year, but a 26.2 per cent increase from the month previous. The sales of condominiums were down 28.2 per cent from last year in March with 211 units sold. Single family homes were 30.8 per cent down from the year previous, with 337 sold this March.

“As we expected, March sales are tracking lower than in 2017,” says Victoria Real Estate Board President Kyle Kerr. “This is likely due to a number of factors that have created hesitation in consumers, including recent heavy measures by the provincial government to reduce the value of home prices and the federal government’s new mortgage qualification rules. Combine these factors with rising interest rates and you’ve got a housing market that is in transition due to outside influences. Every time there is intervention into a market, it takes a few months for the market to rebalance. With the continual changes of late from different levels of government, our market is experiencing a new cycle of ongoing uncertainty.” Continue reading

Victoria Real Estate Market Adapts to Changing Policy Landscape

A total of 545 properties sold in the Victoria Real Estate Board region this February, 19.3 per cent fewer than the 675 properties sold in February last year. The sales of condominiums were down 15.5 per cent from last year in February with 174 units sold. Single family homes were 24.4 per cent down from the year previous, with 260 sold this February.

“We certainly anticipated that we would see some lower numbers this year compared to last,” says Victoria Real Estate Board President Kyle Kerr. “Right now prospective home buyers are met with many hurdles as they start shopping for their new home. They’re in a market that’s experienced long-term low inventory, which means more price pressure and competition on homes. Buyers are navigating increasing interest rates and the new mortgage stress test. These factors all combine to constrain our market. Like any changes to consumer experience, there is a period of response before consumers adapt to the new rules. We saw an increase in buyers in November and December who bought early to avoid the mortgage stress test, and this likely means less buyers in the current market. However, with continued historical low inventory levels, demand is still outpacing supply.”

There were a total of 1,545 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of February 2018, an increase of 3.6 per cent compared to the month of January and 0.5 per cent more than the 1,537 active listings for sale at the end of February 2017.

“The provincial government recently rolled out its budget, which includes an admirable commitment to spend six billion dollars to build 114,000 units in ten years,” adds President Kerr. “These units will take years to come to market, and it is difficult to predict how many we will see in Victoria. The government needs a long-term approach to supply needs in our area, and that initial commitment is a good start. A reasonable way to bolster their commitment and improve current conditions is for the province to work with our municipalities to reduce the timelines and costs associated with bringing new housing to our market.”

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in February 2017 was $771,100, while the benchmark value for the same home in February 2018 increased by 9 per cent to $840,300, slightly higher than January’s value of $831,900. The MLS® HPI benchmark value for a condominium in the Victoria Core area in February 2017 was $394,400, while the benchmark value for the same condominium in February 2018 increased by 19.85 per cent to $472,600, which is slightly higher than January’s value of $460,500.

About the Victoria Real Estate Board – Founded in 1921, the Victoria Real Estate Board is a key player in the development of standards and innovative programs to enhance the professionalism of REALTORS®. The Victoria Real Estate Board represents 1,371 local Realtors. If you are thinking about buying or selling a home, connect with your local Realtor for detailed information on the Victoria and area housing market.

Complete stats package here.

Victoria Real Estate market begins the new year with low inventory and high demand

A total of 431 properties sold in the Victoria Real Estate Board region this January, 9.8 per cent fewer than the 478 properties sold in January last year. The sales of condominiums were down 30.6 per cent from last year in January – with 118 sold. Single family homes were 4 per cent down from the previous year, with 215 selling in the first month of 2018.

“We expected January to be a bit slower after the increase in activity we saw in November and December, which was likely due in part to buyers entering the market early to avoid the new mortgage stress test,” says 2018 Victoria Real Estate Board President Kyle Kerr. “We have yet to see the full effect of the stress test, as many people attained a 90 -120 day pre-approval before the test became required January 1. We won’t know how much that stress test will affect the spring market until we see the numbers, and spring is also the time when sales traditionally pick up.”

There were a total of 1,491 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of January 2018, an increase of 7.7 per cent compared to the month of December and 1.6 per cent fewer than the 1,516 active listings for sale at the end of January 2017.

“2017 concluded with very constrained inventory levels, which hit record lows early in January. The lack of inventory in our market is maintaining pressure on pricing, especially as high demand continues in many areas of Victoria,” adds President Kerr. “We can also see the effects of headwinds influencing our market in 2018, including attempts to curb demand at all levels of government. The mortgage stress test is the latest to be introduced, and we may learn of further measures later this month when the provincial budget is released. We hope the government takes a balanced approach to our housing market in their budget and offsets any further demand-side measures with initiatives aimed at addressing the ongoing supply shortages for both home buyers and renters. We also encourage our local governments to take some time to assess the effects of demand-side measures like the mortgage stress test and recent interest rate hikes before introducing further restraints on our market.”

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in January 2017 was $761,100. The benchmark value for the same home in January 2018 increased by 9.3 per cent to $831,900, slightly higher than December’s value of $823,800. HPI benchmark value for a condominium in the Victoria area in January 2017 was $375,300. The benchmark value for the same condo in January 2018 increased by 20.1 per cent to $450,600, which is slightly higher than December’s value of $445,000.


About the Victoria Real Estate Board – Founded in 1921, the Victoria Real Estate Board is a key player in the development of standards and innovative programs to enhance the professionalism of Realtors. The Victoria Real Estate Board represents 1,357 local REALTORS®. If you are thinking about buying or selling a home, connect with your local Realtor for detailed information on the Victoria and area housing market.

Victoria Real Estate Market Slowly Stabilizing after a Record Breaking 2016

A total of 664 properties sold in the Victoria Real Estate Board region this October, 9.7 per cent fewer than the 735 properties sold in October last year.

“As expected, we saw fewer sales than this time last year,” notes Victoria Real Estate Board President Ara Balabanian. “Looking at the longer term picture however, sales last month were 17.1 per cent above the ten year average of 567 properties for the month of October, so the market is still very active here in Victoria, and this is in spite of the ongoing low inventory levels.”

There were 1,905 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of October 2017, a decrease of 3.6 per cent compared to the month of September and 1.7 per cent fewer than the 1,938 active listings for sale at the end of October 2016.

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in October 2016 was $752,000. The benchmark value for the same home in October 2017 has increased by 9.3 per cent to $821,900, but is lower than July’s value of $834,200.

“The fact that we’ve seen such a controlled levelling off in the market directly following a year which felt so uncontrollable in terms of demand and pressure on prices illustrates the depth and stability of the Victoria market. An unstable market may have experienced a heavy correction or shift, whereas in our market sales are moderating at a reasonable rate.” adds President Balabanian. “In the coming months we expect to see less inventory on the market, because the year end changes buyer and seller behaviours, their focus shifts to holidays and winter weather. One unknown influence that may play on the winter market is the upcoming mortgage stress test. Some buyers may move their purchasing timelines forward to make their home purchases before the stress test on uninsured buyers (those with a down payment of 20 per cent or more) becomes required January 1.”

About the Victoria Real Estate Board – Founded in 1921, the Victoria Real Estate Board is a key player in the development of standards and innovative programs to enhance the professionalism of Realtors. The Victoria Real Estate Board represents 1,364 local Realtors. If you are thinking about buying or selling a home, connect with your local Realtor for detailed information on the Victoria and area housing market.

Article taken from vreb.org

September sets new records for Victoria real-estate prices

Sales of real-estate in September pushed the region’s median single-family home prices to record highs, according to newly-released data from the Victoria Real-Estate Board (VREB).

The month’s median price for a single-family residence shot up to $795,000, a 3.3% jump over June’s then record-setting $769,450.

September’s average price settled at $884,196, just an inch below the record-breaking $885,281 high set in June of this year.

READ MORE: Inventory slump keeps Victoria’s third quarter real-estate sales suppressed

Prices paid for condominium residences also set new records with $488,438 settling as the highest-ever monthly average price with an accompanying record-breaking median of $390,000. Both figures eclipsed previous records by 10.4% and 5.1%, respectively.

Thus far 2017’s year-over-year single-family home prices reached new average highs of $856,863 while the median price is at an all-time high of $754,500. Condominium values for the year also remain at record highs with an average of $414,062 and a median of $362,000.

The news comes as part of a data release from the VREB that indicates the region’s home sales have been depressed due to low inventory.

Article taken from citified.ca

Victoria Real Estate Market Statistics for September 2017

“We can certainly feel the difference in the current market when we compare to last year’s record breaking numbers. Last year the pace of the market was intense, there was a lot of pressure on pricing and demand,” notes Victoria Real Estate Board President Ara Balabanian. “Now the tempo of the market is trending slowly – very slowly – towards more balanced conditions.”

Complete stats package here.