The province’s housing market is coming to a slow after reaching breakneck speeds in 2017, though trends are likely to stay similar in Greater Victoria.
According to data from the B.C. Real Estate Association and the Canada Mortgage and Housing Corporation (CMHC) , residential sales across B.C. are expected to drop by 23 per cent by the end of 2018, and are forecast to rise from that low by 12 per cent in 2019.
The resale market in large urban centres is anticipated to slow across B.C. with average prices staying steady.
In Greater Victoria, markets are expected to slow but prices are anticipated to either stay the same or rise slightly.
According to the CMHC, in 2018 Victoria saw the highest number of housing units under construction in a generation, and while sales and starts are likely to slow in 2019 and 2020, prices are likely to stay above the provincial average.
“With rising mortgage rates and overvaluation detected by Metro Victoria Housing Market Assessment, affordability for new buyers will also be a headwind for the market for resale homes,” the CMHC report reads.
Condo prices in Victoria are also likely to continue to rise, though at a slightly slower rate.
Victoria’s infamous vacancy rate is predicted to finally reach over the one per cent mark in 2019/2020 thanks to the high construction rates, but average rental rates are expected to increase with the addition of the new apartments, in part thanks to a high turnover rate of renters at older units.
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