We saw last month (March 2017) continue with a very familiar local real estate trend of high demand with low inventory, forcing prices to increase as buyers battle for the limited number of homes that are on the market.
The benchmark value for a home in Victoria jumped by 19.1% to $790,100 compared to the same month one year ago, according to the Multiple Listing Services HPI. This price hike occurred while the overall number of properties sold in the month dipped by 17.1% year-over-year, with 929 units sold at the end of the month.
These changes weren’t entirely unexpected; the Victoria Real Estate Board (VREB) President said that they knew it wasn’t realistic for the market to continue its record-setting activity seen in 2016. In fact, although the number of properties sold last month dropped by a significant amount, it was still the second-highest March ever in terms of sales.
Unsurprisingly, the number of homes available on the market dipped as well. In March 2017, there were 1,556 listings on the market compared to more than 2,600 properties listed in March 2016. This was a 40% drop year-over-year and gives us a glimpse of just how high demand continues to be in the area.
In a market with such high demand and low inventory, both sellers and buyers must act quickly if they want to enter the market. If you are selling a home, for example, it’s important that you seek the help of a real estate professional to help you define a strategy for determining a list price. Although people are paying more for homes, it’s still important that you do not overprice your home right from the start.
The VREB is optimistic that as we move further into Spring we will begin to see more listings hit the market. The President of the VREB noted that people tend to prefer to list their home when they are able to display their beautiful gardens and trees, believing that it will help with the effort of selling their home for as much as they can.
The following months will give us an idea of what we can expect to see moving forward in 2017. With the winter months behind us and the Spring market upon us, now is the time that we anticipate the real estate market to heat up.
Will prices continue to rise? Will we see a higher number of properties hit the market as the favourable weather approaches? These questions remain unanswered, but we have strong reason to believe the market will not be cooling down anytime soon.
If you’re looking at selling or buying a home, contact a Victoria mortgage broker at Auxilium today! Call Toll-Free 1-855-590-6520 or visit us at 307 Goldstream Avenue during regular business hours, Monday through Friday 8:30 a.m. – 5:00 p.m. We can also arrange an appointment evenings or weekends to work with you.
When it comes to your mortgage, the team at Auxilium aims to provide you with the most accurate and helpful information possible. When it involves buying or selling a home, we keep you updated on the current housing market and future predictions as your trusted Victoria mortgage broker.
Auxilium Mortgage Corporation is based in Victoria, BC and works with clients locally and across Canada. The Auxilium team has over 100 years of combined financial experience and access to dozens of lenders to help you meet your goals.