The price of single-family homes has increased 17 per cent from the same time last year.

Average price of family home continues to rise

There’s a new record for the average price of a single-family home in Victoria — $763,517 — an increase of 17 per cent from last year.

There’s a new record for the average price of a single-family home in Victoria — $763,517 — an increase of 17 per cent from the same time last year.

For the third month in a row, the Victoria real estate market has posted record-breaking sales numbers. A total of 905 properties sold in the Victoria Real Estate Board region in May — a 26.8 per cent increase compared to the 714 properties sold in the same month last year.

According to Mike Nugent, president of the real estate board, Victoria neighbourhoods like James Bay and Fairfield continue to be hot spots for buyers, along with Oak Bay and Cordova Bay.

About 20 per cent of the buyers in Oak Bay were Vancouver buyers, which Nugent said are having a huge effect on prices. Multiple offers have now become the norm, with some listings selling 30 to 40 per cent over the asking price.

“They are used to seeing higher prices so it’s easier for them to be more aggressive when there are multiple offer situations than what a local buyer might do,” said Nugent, noting there’s still a low amount of listings in the most desired neighbourhoods. In May, Greater Victoria’s inventory of available properties was 2,406, down from 4,043 the previous year.

“The pressure is definitely on specific neighbourhoods.”

The pressure on single-family homes started last year when the city had a healthy supply of condos. But now, Nugent said that healthy supply is starting to disappear as well, which could push up the prices of condos. Already he’s seen multiple offers in the most desirable neighbourhoods.

Houses outside of the core (Victoria, Oak Bay, Saanich, Esquimalt and View Royal), however, continue to be reasonably priced. The average price of a home in the West Shore is $200,000 below Victoria due to a building boom that’s providing plenty of new inventory.

Nugent said it’s hard to predict what will happen in the future, but he doesn’t believe Victoria’s surging home prices will turn buyers away. The market has gone through similar cycles in the past, where the average price of a single family home has doubled.

Victoria’s economy also shows no signs of slowing down, with jobs drawing more people to the area, along with wealthy retirees. Nugent has also seen a shift in people cashing in on their homes in Victoria and moving to other parts of the Island, such as Cowichan Lake — which saw sales skyrocket last month.

As for getting into the red hot real estate market, Nugent said it’s important for buyers to have all their financial paperwork in place so they’re ready to pounce on a property. He also advised being open to other neighbourhoods other than the core.

“People need to be flexible. I don’t see the pressure coming off any time soon,” said Nugent. “It’s high stress for buyers and it’s also very difficult for even expert realtors to accurately guide sellers for a sale price.”

 

 

Just Posted

‘Cartoony’ mushrooms popping up across Vancouver Island are highly poisonous

Fly Agaric mushrooms can cause hallucinations, gastrointestinal pain and death

Marble humpback sculpture wins Oak Bay’s ArtsAlive 2019 People’s Choice Award

Daniel Cline’s Harmony Humpbacks will be recommended for purchase

Access: Technology lags for people with vision, hearing impairments

Accessibility barriers addressed at the Pacific Training Centre for the Blind

Saanich police arrest man who spat on, pulled knife on man who refused to give him a cigarette

Police recommend the 18-year-old be charged for assault with a weapon

Chilean teen brings protest to Victoria streets

Chile’s peaceful protest unseen, says visiting student

WATCH: Artist explains inspiration behind new Oak Bay mural

Oak Bay’s Parade of Play mural might be the biggest in Greater Victoria

POLL: Are you satisfied with the result of the federal election?

The ballots have now been counted and the dust has settled on… Continue reading

Greater Victoria wanted list for the week of Oct. 22, 2019

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Beers on the job, smacking crotches: 10 police misconduct probes in B.C.

Recent report by the Office of the Police Complaint Commissioner highlights a number of investigations

Seizure of cannabis edibles, including mac-and-cheese, prompt warning from B.C. RCMP

Potato chips, cheesecake and candy infused with cannabis also seized back in August

B.C. parents sue city and province in 12-year-old daughter’s drowning at lake

Beverly Park drowned at Rotary Lake in Dawson Creek in August 2016

Island mom warning others as suspicious powder found in mail

“I was very uneasy … it could be coffee whitener or it could be something else in the bag.”

VIDEO: Chill with polar bears through an Arctic live cam

Cam reopens just ahead of Polar Bear Week

Most Read