The spring market gains momentum as sales in Victoria increased 20% in March over last year, but sales were still slightly lower than our long term average. The article below is from the Greater Victoria Real Estate Board with a market update:

March 2014 Real Estate Activity in Victoria 

April 1, 2014

VICTORIA BC - The Victoria Real Estate Board today released its monthly report on real estate activity in the Victoria area for March 2014.

575 properties sold in the month of March 2014, compared to 483 in March 2013 - an increase of nearly 20% year over year. However, the average sales for the month of March over the past five years is 607 properties per month, so though 2014 is stronger than the year previous, sales have not yet returned to the longer term average.

Victoria Real Estate Board President Tim Ayres says, "This time last year sales weren't outstanding - the market was sluggish. Tightened mortgage amortization rules resulted in slower sales as buyers adjusted to the new requirements. Property values were stable, but inventory didn't move quickly. This year we see more sales than last March."

The Victoria Real Estate Board uses the MLS® Home Price Index (MLS® HPI) to report on property values. The MLS® HPI uses the concept of a benchmark home, a notional home with common attributes of typical homes in a defined area. Through the analysis of ten years of Victoria Real Estate Board MLS® sales data, the MLS® HPI defined benchmark homes for Victoria in each category (single family homes, townhouses, condos) and for each neighbourhood. The benchmark starting point was 2005, where each type of property and neighbourhood was assigned an index value of 100.

Current MLS® HPI composite (inclusive of all single family homes, condos and townhomes sales) for the Victoria Real Estate Board area is 139.3 - compared to 139.1 this time last year. While these overall numbers indicate little change in the last 12 months, some areas have changed more than others. Local REALTORS® can interpret what this means to specific neighbourhoods in the region.

President Tim Ayres explains what this means to the local market, "The stable property values year over year, along with the strong inventory of properties we see for sale shows that we have returned to balanced market conditions. There is no extreme upward or downward pressure on housing prices right now. This stability in value combined with the new lower interest rates we see from some lenders may move a lot more buyers into the Victoria and area housing market."

The first two months of 2014 show a consistent increase in sales over 2013, and strong market activity ahead of our spring market. The article below is from the Greater Victoria Real Estate Board:

Real Estate Activity Continues Ahead of Spring Market 

March 3, 2014

VICTORIA BC - Real estate market activity in the first two months of 2014 remained slightly ahead of the same period in 2013.

Total MLS® sales in February were 412, a 4.6 per cent increase over February 2013 when 394 units sold and a 20.5 per cent increase over the 342 sales reported to the Victoria Real Estate Board (VREB) in January 2014.

"It's encouraging that sales activity continues to increase as we move towards a healthy spring market," noted VREB President, Tim Ayres. "2013 spring sales were quite strong and we're hoping for a similar level of activity this year."

The MLS® HPI single-family home benchmark price for the entire Greater Victoria region was $483,400 in February, a 1.4 per cent decrease when compared to the February 2013 value of $490,100.

"With a $5 million condominium sale in February, it was no surprise to see average prices for condos rise last month from $328,130 to $373,749," said Ayres. "Since the introduction of the MLS® Housing Price Index (HPI) in November 2013, we've been saying the HPI is a much more reliable measure of price trend data than average prices. Our February MLS® HPI numbers prove it; even with the $5 million sale, February MLS® HPI benchmark pricing for condos in Victoria remained virtually unchanged with an increase of only $400."

At the regional level, the MLS® HPI benchmark price for the single family benchmark home in the Core municipalities was $547,800. This benchmark price is virtually unchanged when compared to both the previous month and February 2013. In Westshore, the MLS® HPI benchmark price for the single family benchmark home was $408,500, up 0.9 per cent from January 2014 and a 1.0 per cent decrease compared with last February. The MLS® HPI benchmark price for the single family benchmark home on the Peninsula was $502,600 for February, an increase of 1.1 per cent over the previous month and a 4.1 per cent decrease year-over-year.

There were 3,770 active listings at the end of February. While this is an increase from 3489 at the end of January, it is 7.4 per cent less than the 4072 listing that were available in February 2013. Inventory has been on a slow decline for most of 2013 but our normal cycle should result in more inventory as we move into Spring.

There were 107 condominium sales in February 2014, up from 92 in January and down from the 112 in February 2013. The region-wide MLS® HPI benchmark price in February for condos was $277,200, down 1.3 per cent from $280,800 from one year ago.

For townhomes, 42 sold in February compared to 30 in January and 43 in February 2013. The region-wide MLS® HPI benchmark price for townhomes was $401,500, up 1.4 per cent from $396,000 in February 2013.

Total Waterfront Single Family Dwellings sold: 8
Total Non-waterfront Single Family Dwellings sold: 219
Single Family Dwellings sold over $1 million: 15 (4 over $1.5 Million)

Great news for first time home buyers, as the exemption threshold for Property Transfer Tax has been increased from $425,000 to $475,000 for first time buyers. This can save a first time buyer $7,500! A partial exemption now applies to any property under $500,000, over a previous $450,000. This means over 500 single family homes in Victoria currently qualify for a full exemption, and almost 50% of all current listings are available with a full PTT exemption to first time buyers. Interest rates are also down again, making it a great time for first time home buyers to enter the market!

This last week marked the launch of Royal LePage's new marketing initiative, Islands Best Homes, in Victoria. Through this new marketing initiative the issue below will be featured in local newspapers, reaching 90,000 homes in Greater Victoria. This insert is in connection with www.islandsbesthomes.ca which features Royal LePage listings from all over Vancouver Island. Just another way we provide more exposure for your home in todays market!

If you are currently a volunteer with any organization, let us know! Our UnitedNow! Council is currently doing a prize giveaway for 2 boathouse day passes at the Oak Bay Beach Hotel. Go to our UnitedNow! Council page, open the Facebook link and like our page, then comment on the post to be entered in the draw. Good luck :)

After a strong end to a great 2013, the trend continues with an increase in sales of 16.3% last month over January 2013. Inventory is at less than 3,500 units right now as we enter our second month of 2014, it is a great time to list your property as we are seeing homes sell quickly which are "attractively-priced and well-presented".

For the full article you can see the Victoria Real Estate Board. 

For the first time in over 30 years, Victoria is launching a "purpose built" rental building called the Hudson Mews. Both 1 and 2 bedroom options are available in 120 suites, and it will be located next door to the popular Hudson building and Victoria Public Market. It will be interesting to see what effect this building has on the downtown rental market, especially for investors. 

Looking to sell your home in the new year? Here is a great article from Houzz on how to get your home ready for a "Faster and Better Sale". Tons of articles from how to stage your home, the difference between staging and decorating, how to create curb appeal, and how to save money while doing it all! 

It is a happy new year for Greater Victoria Real Estate as December saw an increase in sales of 25% over 2012, a great way to end a strengthening market in 2013. Inventory was also down 9% compared to the end of 2012, as we see an increase in consumer demand. There is no increase expected for interest rates in the near future making it a great time for first time home Buyers to enter the market. I look forward to the new year and helping more clients in the purchase and sale of their homes.

You can view the full article from the Victoria Real Estate Board talking about our current market.

Now SOLD!! A great James Bay Duplex only a few minutes walk to Downtown, Dallas Road, and Beacon Hill Park. Congratulation to my happy Buyers, clients, and new friends. 

My Christmas Market Update is now available. Happy holidays and Merry Christmas to all your families, I look forward to working with you in the new year!

After experiencing a strong market over the last 5 months, Victoria had moderate sales for the month of November. The article below is from the Victoria Real Estate Board talking about our current market:

Victoria Real Estate Sales Moderate in November; Overall Prices Remain Flat 

December 2, 2013

VICTORIA BC - Greater Victoria real estate sales moderated in November following a brisk June-to-October market. According to the Victoria Real Estate Board (VREB) MLS® System, 412 properties sold compared to 366 in November 2012, an increase of 12.6 per cent.

"We saw market activity slow down after a very busy five months," says Shelley Mann, VREB President. "While sales were higher than in November 2012, fewer sales than previous months indicate a pull back in consumer demand."

Flat employment and weak economic growth are likely contributors to a moderating market. Mann also notes that active listings continued to decline, with 4,017 at the end November compared to 4,488 in November 2012. December and January are typically the slowest months for real estate sales.

For November 2013, the MLS® HPI benchmark price for the Greater Victoria single family benchmark home was $482,300 and its corresponding index value was 136.5. (This represents a 36.5 per cent increase since January 2005, when the index was 100). This benchmark price decreased 0.72 per cent over the past month and decreased 3.11 per cent over the last year.

At the regional level, the benchmark price for the single family benchmark home in the Core municipalities was $548,600, an increase of 0.14 per cent over the previous month and a 1.65 per cent decrease over November 2012. In Westshore, the benchmark price for the single family benchmark home was $403,600, a decrease of 1.70 per cent over October 2013 and 5.94 per cent decrease over November 2012. The benchmark price for the single family benchmark home on the Peninsula was $508,000 for November, a decrease of 0.04 per cent over the previous month and a 2.57 per cent decrease year-over-year.

There was a total of 381 single family homes sold in November, an increase of 11 per cent over November 2012. November also saw the reporting of 99 condominium sales and 49 townhouse sales in Greater Victoria. Benchmark prices for the Greater Victoria condominium benchmark home and for the Greater Victoria townhouse benchmark home for November were $280,600 and $389,000 respectively.

Total Waterfront Single Family Dwellings sold: 9, up 3 over November 2012 
Total Non-waterfront Single Family Dwellings sold: 207, up 11 over November 2012
Single Family Dwellings sold over $1 million: 7 (1 over $2 million)

On November 1st, the VREB adopted the MLS® Home Price Index (MLS® HPI) to report residential property price trends. The methodology used by MLS® HPI has been endorsed by Statistics Canada, Canada Mortgage and Housing Corporation, the Bank of Canada, Finance Canada and Central 1 Credit Union.

At the heart of the MLS® HPI is the concept of the "benchmark" home, a notional home that has the most common features of a typical home in a given area. The benchmark home is not meant to represent any actual house, condo or townhouse, but merely provides an identical example to track market changes. There are separate benchmark houses, condos and townhouses in each distinct area of the Greater Victoria region, enabling price tracking of very distinct markets.