We’re now into the first week of December and the holiday season is upon us. The Victoria Real Estate Board has released their statistics report for Victoria Real Estate in November. It’s no surprise that we’ve seen a bit of a surge in activity in November in light of the upcoming mortgage stress test changes.
“We suggested last month that some buyers may accelerate their purchase timeline to buy a new home in anticipation of the mortgage stress test on uninsured buyers – those with a down payment of 20 per cent or more – that will come into effect on January 1,” says Victoria Real Estate Board President Ara Balabanian. “Judging by the sales we saw in November and what I have heard from our REALTOR® members, some buyers have indeed accelerated their purchasing plans to avoid the stress test. This may change the numbers we see in the early months of 2018, as some buyers who had planned to buy next year have bought a bit earlier.”
“So was this November a record breaker?”asks President Balabanian. “While not a record, it is the highest November sales count we’ve tracked since 1996. It is also rare that we see November numbers beat October numbers. The fact that we’ve had an unusual month does not necessarily mean that this is the start of a new trend, it is however, a good example of how outside forces can impact a housing market. It’s likely there will be more government-led change in the new year and we’ll report on the effects of those changes on the market. Our hope is that the different levels of government coordinate their efforts to avoid a negative compounding effect on the market.”
Condos saw the same spike in activity in November this year with 220 condos sold, a 29% increase over November of last year. The average price per condo sold this November was $437,741, a 26% increase over November of last year. We’ve seen a slight increase in active condo listings since last year, with 266 condos on the market at the end of the month. We agree that this likely is not the start of a new trend, but more so a reaction to the upcoming changes to the mortgage rules.
To read the full release, check it out here: http://www.vreb.org/current-statistics
If you’re 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