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

June 1, 2018  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.

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 1,362 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.

 

Contact Kim & Vicky today for a fresh Home Evaluation! (250) 514-1663 


 

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In today's fast paced Real Estate market, it is not uncommon to search for weeks or even months to find the home of your dreams.

You feel like you are never going to find the perfect one and are overcome with defeat. Perhaps even accepting the fate of yourself and the cats in the one bedroom apartment forever. Cue, Bridget Jones and poor eating choices. 

 

Swiping through listings, your first goal is to find a match and make a date to meet in person. Please, please let them look like they do in the profile photo!

 

And then...when you do find the right one...it's time to ask good questions, identify flaws, and make sure that this will work for you in the long run.

As a seasoned bachelorette, I am not fooled by that initial chemical romance. In the dating and home searching world, I know all too well that nothing is forever until both parties have signed all necessary paperwork and I know basically everything about my new digs.

As our clients, we play a huge emotional role in your life, on this 'Real Estate Rollercoaster' 

We see it often. You fall in love with a home, make an offer, and are quickly beat out by another offer. Rejection is rampid in this industry, as it is in dating. 

Chin up! This is all a part of the process, and Kim and Vicky are here to support you, and kepp your motivation up!

 

A good Realtor® can see past the 'socks and sandals' and suggest ways to help your new project be a little more fashionable. On the other end of the spectrum, a leak in a home is akin to your date having a drinking problem....repairs are needed on a more serious scale and need to be addressed immediately. My work partner, Kim has a bloodhound nose for defects in a home AND defects in dates. I can trust her, and I know that you can too. 

 

This process is ALL about relationships, and Kim and Vicky are here to support you! 

 

And, alas...this is why we think that finding your dream home.... is like finding your soulmate. Enjoy! 

 

  • You have to go on several dates before you find something you like
  • First impressions are key and leave a lasting impression. A poorly maintained home is akin to wearing socks and sandals on the first date.
  • Searching the MLS is like ‘Tinder’ for Real Estate. Endless swiping through listings until you find a potential match
  • Any offensive odour will have you running for the hills
  • Age IS important. But a well maintained 1960's home with good bones can still be a great investment!
  • Constantly having to change your criteria as you go. Along the way you always find something that changes your expectations
  • Honesty and disclosure are VITAL. Check out that Property disclosure! Hey...wouldn't it be great if your date came with a property disclosure? Think I'm on to something here...;) 
  • You are inevitably searching for a long term relationship (House flippers / serial daters exempt)
  • Appearances can be deceiving. That house may look nice on the outside, but a good Realtor® will discover hidden flaws or defects in a timely manner (The Real Estate version of a drinking problem)
  •  Sometimes you get a bad bathroom pic. 
  • Find out about those finances! It is NOT taboo to ask about money. 
  • Homes with properly manicured gardens have a better chance of a second showing…(Yes...you read that right)
  • Sometimes the photos online look NOTHING like the property
  • You usually need 24 hours notice to view a property (Us gals need some time to prepare ourselves!)
  • Your friends and family usually like to get involved in the process
  • You’re going to have your heart broken several times before you find the right one
  • Sometimes you find the right one. You make all the right moves and offers and it still doesn’t work out 
  • Sometimes you just never get the answer as to why they didn’t pick you
  • It’s not uncommon to be torn between two of them. Choose the one that makes you the happiest and you can picture spending your life with…
  • When you do find the right one…at one point you need to start packing your boxes!

 

Whether you are searching for your true love, or your dream home....we are on your side! 

 

kim@kimandvicky.com

vicky@kimandvicky.com

www.kimandvicky.com

Direct: (250) 514-1663

Pager: (250) 384-8124

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MLS® property information is provided under copyright© by the Vancouver Island Real Estate Board and Victoria Real Estate Board. The information is from sources deemed reliable, but should not be relied upon without independent verification.