We are now into a New Year and able to reflect back on the past 12 months in the Victoria Real Estate market to see what actually happened after another fairly hectic month. Overall, we did see the market start to balance out as predicted at the beginning of 2017, compared to the year before. We are still seeing multiple offer situations with properties selling quickly and above asking price, but not as frequently or competitively as before. We are interested to see what impact the new mortgage stress test rules will have on buyers and sellers this year; there may be a market adjustment period for that as well.
“Early in 2017 we discussed how the Victoria area housing market would be different than the record breaking year we had in 2016 and that over the course of the year we’d probably see a gradual return to a more balanced market. We did see evidence of this change come early in the year, as multiple offers and rapid price increases leveled out,” says Victoria Real Estate Board President Ara Balabanian. “However, the ongoing low inventory of properties for sale meant that buyers continued to experience competitive situations in high demand areas, and multiple offers were still a common occurrence as buyers negotiated in a tighter market. What we couldn’t anticipate were outside factors such as changes to mortgage qualifying rules that may have pushed people into the market early. The pending mortgage stress test in particular is likely to have caused much of the increased activity we’ve seen in November and December.”
The average sale price for a condo in December this year was $449,460, a 16% increase over December of last year. Although the inventory for condos is still lower than the historical average, we saw a slight increase of active condo listings on the market this past month compared to December 2016 (206 active condo listings in December 2017).
“Overall, the low inventory and the continued interest in Victoria real estate meant that well-priced homes were quick to sell in 2017. Moving forward, we expect to see more inventory come into the market, which will continue to move us toward a more balanced state,” adds President Balabanian. “We also expect housing prices to remain stable, without the increases we tracked in 2016, and anticipate steady slow growth. In markets like these, it’s important to enlist the services of a REALTOR® to help you navigate what may be your largest transaction ever.”
To read the full release, check it out here: http://www.vreb.org/current-statistics
If you are looking to purchase or sell a property in the current market, or in the future, get in touch with The Condo Group for more information at 250-382-6636.
— Amy Francoeur