Real Estate in Victoria Cooled in November, But Still Surpasses 2017

Real Estate in Victoria Cooled in November, But Still Surpasses 2017

Residential home sales in Victoria appear to have slowed in November, helping reign in price increases and potentially increase supply, according to the latest monthly update about real estate in Victoria from Greater Victoria Real Estate Board (VREB).

“We certainly anticipated a difference this year in terms of sales for November compared to last year,” says Victoria Real Estate Board in its November report. “This time last year, the government announced plans to change mortgage lending qualification rules and our market saw a rush of activity as buyers tried to beat that new lending criteria which was rolled out January first.”

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The ten-year average of units sold for the month of November 2018 was in fact 515, likely a better comparison than to the “unusual” market conditions we saw last year, according to VREB in its monthly statement

In November 2018 a total of 498 properties were sold across Greater Victoria, 25.8 per cent fewer than the 671 properties sold one year previously, in November 2017, and a 16.7 per cent decrease from October 2018, the previous month.

Sales of condominiums in Victoria were down 31 per cent year over year, with 152 units sold. Sales of single family homes were down 21 per cent from 2017 with 267 sold this November.

The rate of home price increases also slowed in November 2018, and in some cases declined.

The MLS benchmark value for a single family home in Greater Victoria in November 2017 was $832,800; the benchmark value for the same home a year later, in November 2018, increased by 3.9 per cent to $865,200.

This year over year increase was still lower than the October 2018 single detached home value of $881,000.

Condominium prices saw the same pattern of a year-over-year increase, with a month-to-month decrease from October to November.

The MLS benchmark value for a condominium in Victoria in November 2017 had been $456,200, while the benchmark value for the same condominium in November 2018 increased by 9.7 per cent to $500,500, slightly less than October’s value of $502,600.

There are more homes for sale in Victoria than a year ago, although supply decreased from October to November 2018.

There were a total of 2,343 active listings for sale on the VREB MLS online service at the end of November 2018, an increase of 32.8 per cent compared to November 2017 but 6.7 per cent fewer than the month previous.

“Inventory continues to be low compared to historic averages,” said VREB in its report for November.“The ten-year average for active inventory in November is 3,204, so although it has improved compared to last year, we are still low on choice for buyers. At the same time, waning demand has meant that there is less urgency in our market right now, which can benefit buyers and sellers. The market tends to naturally slow down in the winter.”

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