Real estate prices continue to climb steadily, although townhomes buck the trend
The capital region saw more than 1,000 property sales, including 959 home sales, in June 2017, making that the second-busiest June ever for real estate transactions, according to Victoria Real Estate Board stats released July 4.
The 1,008 total property sales were 14.1% lower than the very hot market of June 2016, but 25% higher than June’s 10-year average of 798 transactions.
“This year may feel a bit steady and less exciting when compared to last year's record-breaking market. People are getting used to this new tempo of brisk sales,” said Ara Balabanian, 2017 Victoria Real Estate Board president. “However, when we look at the longer term numbers, we're in a very active market… If we remove 2016 sales, this June would have been the record breaker.”
A shortage of inventory continues to contribute to the slower sales compared with a year ago. There were 1,915 active property listings on the Victoria Real Estate Board Multiple Listing Service® at the end of June 2017, an increase of 1% over May, but 16.3% fewer than the 2,289 homes for sale at the end of June 2016.
“The good news for buyers is that inventory is slowly starting to build,” added Balabanian. “But buyers can still anticipate multiple-offer scenarios in certain high demand neighbourhoods where inventory is being bought at a more rapid pace. It's never been a better time to be a seller, with MLS® Home Price Index prices at a record high for the Victoria Core.”
Home Type Breakdown
Single-family homes in the Greater Victoria area saw the biggest year-over-year decline in sales, down 18.6% to 476 sales, which is 1.9% higher than May this year.
Condos saw a strong month in June, up 7% compared with May to 307 sales, which is 9.2% lower than a year ago.
Townhouses bucked the trend, however, with 91 unit sales. That is only 1.1% lower than a year ago, but a 24.2% drop compared with May this year. However, the relatively low numbers of Greater Victoria townhome sales means that this figure is subject to much greater volatility than detached homes or condos.
This pattern was repeated in the benchmark prices of each home type, as both condos and single-family homes increased in price year-over-year and month-over-month, but townhome prices slipped compared with May.
The MLS® Home Price Index benchmark value for a single family home in the Greater Victoria area in June was $691,100, which is 15.9% higher than a year ago and 1.9% up since the previous month.
The typical condo price rose an impressive 22.4% year over year to $410,900, 1% higher than in May 2017.
Although townhome prices in June were 18.5% higher than a year previously, they slipped 0.9% since May, now at $543,600.
Home sales and prices vary widely throughout the Greater Victoria region. For detailed information, go to the full June 2017 VREB statistics package. See a detailed infographic of June's VREB statistics.