Victoria Real Estate has given very good returns over the years. We have seen many changes over the last three decades both in price and in how we do business. Below is our latest quarterly update with some Regional, National and International statistics to go with it.
HOME OWNERSHIP ON THE INCREASE
In 1971, the average sale price of a property through the Multiple Listing Service (M LS®) was $24,581. By 2005, the average saleprice had increased almost tenfold to $246,365. During this period,the number of home owner households in Canada has increased faster than the number of renter households. Almost 69% (68.8%to be more precise) of households were owner occupied in 2005 according to a Statistics Canada study released in May of this year. With the exception of PEI, all provinces experienced an increase inhome ownership during this period. Provinces with the largest increase were: NB. (8.9% ), Que. (13.1% ), Man. (9.3% ) and Alta.(11.4% ). In 2005, home ownership was highest in the four Atlantic provinces, Ont., Man., Sask. and Alta., and lowest in Que. and BC. Generally, good economic conditions in the past two decades, coupled with demographic trends and public policy initiatives, have facilitated home ownership.
Since 1986, mortgage rates have generally trended lower. Lower mortgage payments along with rising employment rates have mitigated the effect of rising house prices to some extent. As a consequence, a higher proportion of households have been able to opt for home ownership. Public policies have also encouraged home ownership. For exam ple, in 1992 CMHC introduced a mortgage insurance program to help home buyers qualify for an insured mortgage loan with as little as 5% down. In addition, the RRSP Hom e Buyer’s Plan, also created in 1992,allows buyers to withdraw am ounts tax-free from their RRSP to helpwith the down paym ent on a home. And recently, the federal governm ent decreased the down-paym ent required for a conventional mortgage from 25% to 20%.
Demographic trends have also contributed to increased home ownership. Home ownership tends to increase with age. In the 1970s, the first of the baby boomers began to buy their own homes and this trend has carried through to the end of the 1990s. W ith home owner households at nearly 69% , Canada compares favourably with the United States (69%), Australia (71.5% ) and the United Kingdom (70%). However, Canada lags behind such countries as Spain (81%), Ireland (79%) and Belgium (74% ) but is well ahead of such countries as Germany (43% ), Denmark (51% ) and the Netherlands (52% ).
THE VICTORIA MARKET
Sales of “residential properties??? (i.e., all types of housing excluding lots/acreage and commercial) through the Victoria Real Estate Board’s MLS® strengthened in the 2nd. Qtr. of 2007. (It appears many buyers expedited their decision to buybefore the anticipated hike in mortgage rates). Sales of residential properties totalled 2643 compared to 2324 in the 2nd. Qtr. of 2006.
Indicative of the current strength of the market, the figure of 2642 is 89% higher than the 1398 sales in the 2nd. Qtr. of 2000. The salesto new listings ratio rose to .62 in the 2nd. Qtr compared to .57 inthe 2nd. Qtr. of 2006. Both average and median sale prices continue to increase. The average sale price of a residential property in Greater Victoria and other areas was $476,428 in the 2nd. Qtr of 2007 up 11.3%from $428,147 in the 2nd. Qtr. of 2006. The median sale price was up a comparable percentage to $425,000. The figure of $476,428 compares with average residential sale prices of $591,722 in Vancouver, $429,298 in Calgary and $382,689 in Toronto for the month of May.
All areas and sectors of the Victoria housing market were strong in the 2nd. Qtr. of 2007. The market was particularly strong for more moderately priced housing. For example, the sales to listings ratio for SFDs priced less than $450,000 was a very strong .81. Sales activity for single family dwellings (as measured by the ratio of sales to listings – see page 4) was particularly strong in the Districts of Esquimalt, View Royal, Saanich East and West, Colwood and Langford.THE MARKET INVENTORY
As shown on Table 2, there were 2600 properties (including lots and acreage) active on the Victoria Real Estate Board’s MLS® database for the Greater Victoria area (i.e., excluding the Malahat, Up-Island and the Gulf Islands) on July 1, 2007, up some 13% from 2294 on July 1, 2006. There have been fairly substantial increases in the number of condominiums, townhouses and lots/acreage available.
SINGLE FAMILY DWELLINGS (SFDS)
Sales of SFDs in Greater Victoria in the 2nd. Qtr. of 2007 totalled 1470 up significantly from 991 in the 2nd. Qtr. of 2006. The average sale and median sale prices surged in the 2nd. Qtr. The average sale price of SFDs in the 2nd. Qtr. of 2007 was $567,369 up 8.6% from an average of $522,260 in the 2nd. Qtr. of 2006. Moreover, the median sale price was $490,000 up 9.6% from $447,000 in the 2nd. Qtr. of 2006. SFDs took an average of 34 days to sell in the 2nd. Qtr. of 2007, up slightly from 33 in the 2nd. Qtr. of last year. The sales to listings ratio was a strong .68 in the 2nd. Qtr. compared to .57 last year.
Condominium sales were strong in the 2nd. Qtr. of 2007 with sales of 706 – up from 635 sales in the 2nd. Qtr of 2006. The average and median sale prices of condominiums continue to rise. The average sale price for a condo was $323,260 in the 2nd. Qtr. Of 2007, up 15% from $281,217 in the 2nd. Qtr. of 2006. The median sale price was $272,000. Condos took an average of 45 days to sell in the 2nd. Qtr. of 2007, compared to 37 days last year. The sales to listings ratio was .61, the same as last year.
Townhouse sales totalled 249 in the 2nd. Qtr. of 2007 up from 218 in the 2nd. Qtr of 2006. The average selling price in the 2nd. Qtr. of 2007 was $404,240 up 14.1% from $354,339 in the 2nd. Qtr. of 2006. Townhouses took an average of 38 days to sell in the 2nd. Qtr. Of 2007, up from 31 days last year. The sales to listings ratio was .58.
Sales of lots/acreage have slowed somewhat. There were 70 lots/acreage sold in the 2nd. Qtr. of 2007. The average and median sale prices were $516,209 and $325,000 respectively.
30TH ANNUAL VICTORIA CLASSIC BOAT FESTIVAL®The 30th annual Victoria Classic Boat Festival® celebrates the maritime heritage of Victoria. It takes place in Victoria’s beautiful Inner Harbour over the Labour Day weekend August 31 to September 2. It is a community presentation by the Realtors® of Greater Victoria through the Victoria Real Estate Board and Black Press publisher of Real Estate in Victoria.
The festival is open to vessels of traditional plank-on-frame or riveted steel construction built to a pre-1956 design. Typically, this event draws about 100 vessels from all around the west coast and as far away as California. These wonderful vessels range from small skiffs, to runabouts, to mid-sized cruisers, to working boats and to yachts in excess of 100 feet. You will marvel at the work that the owners of these vessels have taken to restore them and the pride they take in maintaining them. The shiny brass, the polished mahogany and the brilliant paintwork epitomize the term “shipshape.???
There are a number of events associated with the festival. The Classic Rowing Regatta takes place at 10:00 a.m. to noon on Saturday, September 1st. The boats will be launched from the Gorge Rowing and Paddling Club and race from the Gorge Narrows to the Undersea Garden. The Steam Boat Parade takes place on the Gorge W aterway on Saturday at 2:00 p.m.
The Sail-past (the weekend’s highlight) takes place on Sunday, September 2nd. All the participating vessels will file out of the Inner Harbour and parade past the Salute Vessel. Following the sail-past, there will be Schooner, Classic Open and Design Races. You are invited to attend this festival. In addition to the scheduled events, visitors to the festival can simply stroll the docks and admire the vessels. Some of the larger boats welcome visitors aboard.
You can contact us anytime should you have any questions about Victoria Real Estate.
Anders Treiberg, Associate Broker, REALTOR®
Properties In Victoria Professionals– Royal LePage Coast Capital Realty
Anders Treiberg has been a REALTOR® in Victoria, BC. since 1990. He has extensive Real Estate Expertise and can be reached on his website www.PropertiesInVictoria.comAll Articles More Like This