GREATER
VICTORIA REAL ESTATE SUMMARY
2008
PROFILE:
SUMMARY:
2008 began
on the coat-tails of
the strong pricing and sales volume momentum of November and December 2007.
In January,
single family home prices were 8.5% higher
than one year previous, with condo prices over 11% higher,
and townhome prices 10.5% higher.
Inventory was slightly higher at the beginning of 2008
than in Jan.07, and was higher yet in Feb.08 and Mar.08. Sales volume was 12% higher
in 2007 than in 2006, and strong market activity
continues in 2008, though overall monthly sales levels
are lower than 2006-2007.
Some interest-rate
uncertainty may bring out cautionary behaviour in buyers
and affordability is an increasing concern for many
homebuyers. But the
demand for the security of real estate ownership remains
strong and most sellers are still gaining financially on
homes owned more than 3 to 5 years. Therefore
we're seeing a balanced market, serving the interests of
both buyers and sellers.
DETAILS
by PROPERTY-TYPE:
Single
family homes wrapped up in Dec.07 at a new record
average price of $635,450. In January there
is usually less market drive before the busy
spring period; the average house sale price slid to $606,449
in Jan.08 and $587,295 in Feb.08 but began upward
activity again in Mar.08 at an average $597,176. The 6-month rolling average was $586,338
in Jan.08 (a
full $5,000 higher than the previous month, a
pace that was maintained throughout fall 2007), a
bit higher yet in Feb.08 at $588,826, while approaching
the $600,000 mark in Mar.08 at $591,439.
Townhomes
wrapped up in Dec.07 at an average price of $455,026
(not surpassing the Nov.07 record of $474,150).
The average sale price for townhomes has held over the $400,000 mark
since May.07 and in 2008 will likely hold at or above
$425,000. In Jan.08 the average townhome
sale price was $423,348 which rose a bit higher to
$424,157 in Feb.08, then jumping to $457,344 in Mar.08.
Condos
wrapped up the year at an average price of $332,793 in
Dec.07, not
surpassing the record of $359,742 (Nov.06). The
6-month condo average held below $320,000 for most of
2007 -- showing at $319,980 in Dec.07. Pricing in Jan.08 was
looking upward at $349,045 but a downward trend was seen
after that -- $334,047 in Feb.08 and $328,734 in Mar.08; the 6-month
rolling averages of $334,577 and $332,552 (in Feb. and
Mar.08 respectively) hints at condo prices still being
on the rise during 2008.
Regional
Perspective:
Being
a highly desirable Canadian residential location
(climate, coastal lifestyle, etc.), the
Greater Victoria area market has maintained significant
strength during 2004-2007 and 2008 to date.
Price increases have been commonplace over the last five years. Reaching the higher limits of affordability for
average homeowners by January 2007, prices still rose last
year more
than expected (8.5% for single family homes in 2007) and
started 2008 at an average price of $600,000.
Buyers
within the local market, particularly aging baby boomers, may downsize (or move to other
parts of Vancouver Island) and thereby incur some financial
gain. Some local buyers are choosing townhomes over single family homes as a way of purchasing at
lower price levels (for comparatively similar living area
and yard space, as well as increased
convenience)
New buyers to the
Greater Victoria (and southern Vancouver Island) region are
arriving from across
Canada, the USA, parts of Europe, and from Asia.
The population of Greater Victoria was
325,000 as of the 2006 census. Population numbers in the
suburbs of Langford, Colwood and Sooke have expanded rapidly
since 2006, introducing a longer commute time for many
people in the Victoria-area employment scenario.
