Victoria Real Estate Market Sees Slow Increase in Inventory

June 1, 2017 -  "This month we have seen an increase in inventory - which means that buyers have more choice - and it means that now in some areas sellers are competing for buyers," says 2017 Victoria Real Estate Board President Ara Balabanian.

There were 1,896 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of May 2017, an increase of 12.2 per cent compared to the month of April, but 21.2 per cent fewer than the 2,406 active listings for sale at the end of May 2016. 

A total of 1,006 properties sold in the Victoria Real Estate Board region this May, 22 per cent fewer than the 1,289 properties sold in May last year. The ten year average for sales in May is 815 properties. 

"There are many different market conditions in Victoria, because we have so many different neighbourhoods and different levels of demand for those neighbourhoods," adds President Balabanian. "The market won't change immediately, but we can track a shift as more inventory enters the market to meet the demand from buyers. Overall, pressure on pricing is easing because of the increase in inventory and the rate of increase of price is normalizing. As we have predicted, we are seeing the beginning of a gradual return to a balanced market in the Victoria area. In conditions such as the ones we see now, it's more important than ever to have an expert REALTOR® on your side whether you are buying or selling a property."

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in May 2016 was $706,500. The benchmark value for the same home in May 2017 has increased by 16.8 per cent to $825,500. 

Victoria Real Estate Market Inventory Edges Up, Sales Still Constrained

May 1, 2017 - "The numbers we saw in April are a further indication that the market is gradually moving towards a more balanced state compared to the record setting pace of 2016." says 2017 Board President Ara Balabanian.

A total of 885 properties sold in the Victoria Real Estate Board region this April, 31.2 per cent fewer than the 1,286 properties sold in April last year. The ten year average for sales in April is 772 properties.

"We are starting to see hints of a more traditional spring market. Local agricultural production has been delayed due to the late spring, and so has the local real estate market," adds President Balabanian, "More sellers listed their homes for sale over the month of April compared to the month previous."

There were 1,690 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of April 2017, an increase of 8.6 per cent compared to the month of March, but 34.8 per cent fewer than the 2,594 active listings for sale at the end of April 2016.

"Inventory is still low, which means that buyers may encounter multiple offer situations in some of the high demand areas - there is still more demand than supply," adds President Balabanian.

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in April 2016 was $684,900. The benchmark value for the same home in April 2017 has increased by 17.6 per cent to $805,100.

It’s officially Spring, and although the weather hasn’t quite warmed up yet there are still lots of fun activities on Vancouver Island 

For April’s contest the winner will get to go on an outdoor adventure in Downtown Victoria, receiving a 2 hour double kayak rental from Victoria Kayak Tours & Rentals  Enjoy a paddle around the beautiful Gorge Waterway and Inner Harbour, if you’re lucky you will also get to see some wild life along the way 

LIKE, SHARE & POST (for a bonus entry)

Victoria Real Estate Market Continues Trend of Low Inventory, High Demand

April 2, 2017 -  A total of 929 properties sold in the Victoria Real Estate Board region this March, 17.1 per cent fewer than the 1,121 properties sold in March last year.

"We predicted early in the year that we wouldn't see a continuation of the record sales numbers that we saw in 2016," says 2017 Board President Ara Balabanian.  "However, we are still in a very active market, as evidenced by the fact that this is second highest March on record if you remove that record breaking 2016 data. We saw nearly 200 more transactions last month than March 2015, when 734 properties sold."

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in March 2016 was $663,300. The benchmark value for the same home in March 2017 has increased by 19.1 per cent to $790,100.

Inventory levels edged lower, with 1,556 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of March 2017, 40.6 per cent fewer than the 2,618 active listings for sale at the end of March 2016.

"The public and REALTORS® are getting used to the new tempo of the market - with the ongoing historically low inventory levels and high consumer demand - both parties need to be tenacious and have quick reflexes. Sellers need to ensure they have assistance from an experienced local Realtor to help understand current demand and pricing. Even in this market, properties can sit unsold for months without selling because of an inappropriate price," adds President Balabanian. "We do think we will see a more balanced market in the future as more inventory becomes available. Traditionally, people prefer to list their home when gardens and outdoor areas can be shown to their best advantage. Hopefully, as our warmer weather arrives we will see more listings added into the market to offer more choice for buyers."

As of March 17th, 2017 CMHC increased its' mortgage loan insurance premiums, the graph below from CMHC shows the change in rates based on your down payment:

My Greater Victoria Real Estate Market Update is now available! 

"The Victoria Real Estate Market had a healthy start to 2017. A total of 675 properties sold in the Victoria Real Estate Board region this February, 12.6% fewer than the 772 properties that sold in February last year. Although sales are below where they were a year ago at the same time, sales for February and January were still well above the 10 year average. We won't see the same sales volume this year to meet or beat last year's record breaking numbers due to many factors, including the present lack of inventory and very high demand. There were 1,537 active listings for sale on the Victoria Real Estate Board MLS® at the end of February 2017, which is 40% less than the 2,562 active listings at the end of February 2016.

The Provincial Government announced last month that effective February 22nd, first time home buyers will receive a full exemption on Property Transfer Tax for any purchase up to $500,000, and a partial exemption for purchases up to $525,000. This is an increase from $475,000 for a full exemption and $500,000 for a partial exemption which was raised in 2014. Although this isn't a large increase it is a step in the right direction, and hopefully they continue to raise this amount over time, but for first time home buyers this could save you $8,000 on your home purchase of $500,000. The BC Home Partnership Program is also available for first time home buyers now, providing a repayable loan which is interest and payment free for the first 5 years and available on purchases up to $750,000. For full details ..."

Victoria Real Estate Market Healthy Heading into Spring

March 1, 2017 -  A total of 675 properties sold in the Victoria Real Estate Board region this February, 12.6 per cent fewer than the 772 properties sold in February last year. 

"Last month we discussed how 2017 won't match 2016 in terms of huge sales numbers, due to many factors including the present lack of inventory," says 2017 Board President Ara Balabanian. "In spite of the low inventory the real estate market in Victoria is robust. The ten year average for sales in February is 542, so we are well within expected numbers for this time of the year with 675 properties sold. In fact, this February's sales are the second highest in the past ten years. It is also possible that our market may have been restrained over the course of the month due to something that is completely normal in many Canadian markets - the snow fall in the Victoria area certainly cancelled many open houses and may have put a damper on sales."

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in February 2016 was $638,700. The benchmark value for the same home in February 2017 has increased by 21.3 per cent to $775,000. 

Inventory levels edged lower, with 1,537 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of February 2017, 40 per cent fewer than the 2,562 active listings at the end of February 2016. 

"The low number of homes for sale in our marketplace can put pressure on pricing," adds President Balabanian. "The good news is we have seen an increase in new listings this month over January. January saw 753 new listings, while February's count was 880. This time last year there were 1,160 new listings, so we'll be watching the numbers in March closely to see if more sellers decide to get into the market as spring arrives."

It’s March 1st, which means it’s time for a new contest 

For March the winner will receive a gift card for two Long Flights (9 samples of cider each!) and an Artisan Lunch Plate from Sea Cider Farm & Ciderhouse  Enjoy the beautiful view overlooking Haro Strait and a delicious snack and drinks ($53 value *can be spent on other menu items)!

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The Provincial Government announced last week that effective February 22nd, first time home buyers will receive a full exemption on Property Transfer Tax for any purchase up to $500,000, and a partial exemption for purchases up to $525,000!

This is an increase from $475,000 for a full exemption and $500,000 for a partial exemption. Although this isn't a large increase it is a step in the right direction, and hopefully they continue to raise this amount over time, but for first home buyers this could now save you $8,000 on your home purchase of $500,000  

The Property Transfer Tax is calculated at a rate of 1% on the first $200,000 of the purchase price and 2% on the balance. 

Do I Qualify?

To qualify for a full exemption, at the time the property is registered you must:

• be a Canadian citizen or permanent resident
• have lived in B.C. for 12 consecutive months immediately before the date you register the property or filed at least 2 income tax returns as a B.C. resident in the last 6 years
• have never owned an interest in a principal residence anywhere in the world at any time 
• have never received a first time home buyers' exemption or refund

and the property must:

• be located in B.C.
• only be used as your principal residence
• have a fair market value of:
  • $475,000 or less if registered on or before February 21, 2017, or
  • $500,000 or less if registered on or after February 22, 2017
• be 0.5 hectares (1.24 acres) or smaller

You may qualify for a partial exemption from the tax if the property:

• has a fair market value less than:
  • $500,000 if registered on or before February 21, 2017, or
  • $525,000 if registered on or after February 22, 2017
• is larger than 0.5 hectares
• has another building on the property other than the principal residence

For full details to see if you qualifty for the first time home buyer property transfer tax exemption view the link below:

http://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/first-time-home-buyers

Victoria Real Estate Market Starts the Year with Fewer Listings and Above Average Activity

February 1, 2017 -  A total of 478 properties sold in the Victoria Real Estate Board region this January, 11.3 per cent fewer than the 539 properties sold in January last year. 

Inventory levels edged lower, with 1,516 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of January 2017, 38.6 per cent fewer than the 2,471 active listings at the end of January 2016.

"The numbers we saw last year are not the new normal. We know that we are not going to see sales volumes this year that meet or beat last year's record breaking numbers," notes 2017 Board President Ara Balabanian. "When compared to the month of January's ten year average, which is 384 transactions, sales in January 2017 are nearly 25 per cent higher than average. The least active January we saw in the past ten years was in 2009 with 247 sales, and the most active was last year." 

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in January 2016 was $616,700. The benchmark value for the same home in January 2017 has increased by 24.4 per cent to $767,000. 

"It's early in the year to make predictions," adds President Balabanian. "Over the last few decades, the historic cycle in Victoria is longer periods of stable activity and price followed by a rapid rise in activity and property values over a relatively short period of time. The coming months will provide us with a better idea of where we are in this cycle."

On the first day of every month this year I will be announcing a new draw…

Each month will feature a prize for the lucky winner to enjoy “somewhere” or “something” on Vancouver Island! We are truly lucky to live in one of the most beautiful places in the world and I want to share some of the fun with all of you 

For February the winner will receive a one day LIFT TICKET to Mount Washington Alpine Resort to enjoy some (hopefully) fresh snow and a day on the slopes! ❄️

LIKE, SHARE & POST (for a bonus entry)

*Contest Rules*

1. “LIKE” my Facebook page https://www.facebook.com/MikailaRhodesRealtor/

2. “LIKE" and "SHARE” this post 

3. OPTIONAL for a bonus entry: “POST” a picture in the comments of your happy place exploring Vancouver Island!

Good luck to everyone and the WINNER will be announced February 14th as a Valentines Day prize!! 

BC Home Partnership Program – How It Works

The BC Home Partnership program was designed to help first-time homebuyers by providing a repayable loan that will form part of the down payment. Applications for this program will be considered starting January 16, 2017 and can fund no earlier than February 15, 2017. Mortgages must fund before March 2020, at which point the program will be terminated.

Are You Eligible?

• You must be a Canadian Citizen or a permanent resident for at least five years and have lived in BC for at least one year
• You are considered a first-time home buyer
• You intend to purchase a home for a maximum price of $750,000
• You have at least 50% of the down payment required
• Your total household income doesn’t exceed $150,000
• The home purchase will be your principal residence (not a rental)

How Do You Apply?

1. Get pre-approved from an approved lender
2. Apply with your pre-approved letter for the BC Home Partnership program (5 day turnaround)
3. Find a home and make an offer, subject to financing
4. Provide the BC Home loan commitment to your broker/lender (1 day turnaround)
5. Get a final approval for an insured mortgage from your broker/lender
6. Move into your home and fund your mortgage (Requires minimum 14 calendar days)

Other Things You Need To Know About The BC Home Partnership

• Max loan contribution from the BC government is $37,500
• Your deal has to be CMHC insured
• The first 5 years is both interest and payment free
• For years 6-10, the interest rate will be set at the time of purchase and will be equal to the Prime Rate + 0.5% amortized over 20 years (today that equals 3.2%) – the interest rate will be reset at the Prime Rate plus 0.5% at each of the 10th, 15th and 20th anniversary dates
• If you move out of the property during the first 5 years, the loan becomes immediately repayable
• The loan will be registered as a 2nd mortgage
• Everyone on title must be eligible for the BC Home Partnership program

This post was provided by Spin Mortgage: For more information on the approval process and to see if you are eligible you can go to their website to get pre-approved for your mortgage. 

You can also visit BC Housing to see if you are eligible for the loan, and apply online if you are already pre-approved for a mortgage!