MARKET SUMMARY
2007 IN REVIEW - ARCHIVE

GREATER VICTORIA REAL ESTATE SUMMARY

2007 PROFILE: 

SUMMARY:

2007 has shown increased pricing for all property types, with new price records for single family homes and townhomes throughout the year, peaking at $624,450 in Dec.07.

Single family home pricing increased 8.5% during 2007 (at least double the predicted 3% to 5% increase for the year).  Condo prices increased 11% and townhome prices went up 10.5%.

Sales volume increased over 12% in 2007 over 2006. The total dollar transaction for properties in Greater Victoria MLS in 2007 hit a new record at $4.1 billion, up from $3.3 billion in 2006.  More than $2.5 billion in single family homes sold during the year; condos sold to a total of over $756 million.

The emergence of an upward trend in mortgage interest rates and interest on consumer debt is fuelled strong summer market activity; summer sales volumes (May, June and July) were their highest in 15 years.   

The 2007 financing scenario has included buyer options for 35- and 40-year mortgages, a 5% down-payment option when purchasing houses that include rental suites, and new guidelines for self-employed homebuyers.

There continues to be a wide choice of properties available for buyers coupled with strong demand for realistically-priced homes. Sales volumes have been strong all year, most recently at 408 in Dec.07 which is high for the holiday-season month.

Desirable homes in some neighbourhoods were still getting over-list price until around August, but in autumn 2007 some price correction was seen for all property types.  the high average sale price in Dec.07 was due to the sale of 14 homes that were priced over $1 million.  Well-priced properties were selling promptly.

 

---

PROPERTY-TYPE DETAILS:

Single family homes in 2007 showed price increases all year.  A record monthly average of $624,450 was set at year-end in Dec.07, busting the top off the Nov.07 average of $596,586 which had itself skyrocketed past the mid-year record of $574,753 (Jul.07).  The 6-month rolling average increased all year.  It started at $511,192 in January, reached $553,323 by June, $576,230 by November, and achieved $581,419 in December.

Townhomes in 2007 did not surpass the Dec.06 peak of $435,408 until Nov.07 when the new record was set at $474,150.  The average in Dec.07 relaxed a bit to $455,026.  The average for townhomes in Greater Victoria held over the $400,000 mark after May.07 -- $411,900 in May, $405,693 in June, and $404,493 in July.  The 6-month rolling average reached $419,096 by Dec.07.

Condos in 2007 did not surpass the Nov.06 peak of $359,742 at any time during the year.  Toward year end the average price lowered to $313,665 in Nov.07 and finished the year at $332,793 in Dec07.  The 6-month average held below $320,000 for most of this year -- showing at $311,871 in Jul.07 though by Nov.07 had reached $323,778 but went below the $320,000 threshold again by December at $319,980.

 

 

 

MLS PROPERTIES* AVAILABLE FOR SALE	Inventory in 2005  Greater Victoria	Inventory in 2006  Greater Victoria	Inventory in 2007 Greater Victoria
January	2,036	2,187	2,661 (22% higher than Jan.06)
February	2,105	2,320	2,919 (26% higher than Feb.06)
March	2,040	2,480	3,079 (24% higher than Mar.06)
April	2,106	2,627	3,305 (22% higher than Apr.06)
May	2,188	2,903	3,462
June	2,335	3,147  (35% over last June)	3,550 highest in 6 years
July	2,275	3,318  (46% over last July)	3,402
August	2,379	3,345  (41% over last Aug.)	3,352
September	2,436	3,449: highest in 2006; highest in 5 years (42% over last Sept.)	3,381
October	2,496: highest in 2005	3,426	3,311
November	2,399	3,158 (32% over last Nov.)	3,196 (up slightly over last Nov.)
December	2,005	2,650 (32% over last Dec.)	2,799
* = single family homes, condos, townhomes, manufactured homes, commercial properties, and lots