The Victoria Residential Real Estate Review for 2019.
After a very sluggish start to 2019, sales picked up substantially in the latter half, ending up with 7254 to finish the year. Volume up about 1.5% compared to the 2018, largely thanks to new developments.
Median for homes down 1.5% to about $855,000
Median for condos was up about 2% to about $520,000
Median price for a townhome is $685,000
the drifting downwards of prices that we saw earlier in the year stopped by around July and prices started slowly increasing again, to end the year roughly flat for both single family and condo. Condo’s have experienced 2-5% price growth across the core compared to same time last year.
Oak Bay saw the biggest drop in median prices -4% and assessment values in 2019.
On the Westshore Sooke lead the way for single family home price acceleration, and Colwood for towhomes and condos.
Overall, our market
throughout 2019 can be characterized as still active, slow to grow and low in supply
The most impactful government change we saw was the tighter mortgage lending rules, which lowered consumer borrowing power and made many unable to qualify for the value of mortgages they had in the past, therefore compressing more demand into our mid- and lower-priced property market.
Constant demand on this middle housing segment has put a moderate amount of pressure on pricing
And although we did not see huge price increases though 2019 like we did in the run up through 2016, we do see buyers entering into multiple offer situations and competing for properties
the theme heading into 2020 does for now appear to be the limited selection of single-family homes and growth in pressure for more condos and townhomes.
I predict a slight increase in sales volume to 7,400 sales for 2020 and flat pricing due to the market reaching peak affordability in 2016/17.
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