The changes in mortgage qualification rules have reduced buyer’s purchasing power and the proof is in the numbers. Event though there are 20 per cent more active listings than this time last year, there are 25 per cent fewer homes sold compared to June last year. We also have a lot more competition for any homes listed at a lower price ranges and for condominiums because there are a third less homes listed under $750,000 this year over last due to rising real estate prices, and there has not been enough condominiums to meet demand.
On the higher end of the market, there are at least 50 per cent more $1.5 million plus houses listed. The new and potential taxes from the provincial government are putting pressure on some high value home owners to sell. The provincial taxes include the Foreign Buyer Property Transfer Tax, the increased School Tax and the potential Speculation Tax.
The VREB (Victoria Real Estate Board) President Kyle Kerr summed up the current market well. "You may find more flexibility if you are shopping for a multi-million-dollar estate in certain areas,” he said. However, “you may be in for a competition if you're shopping for a lower priced home or condominium.”
The MLS® (Multiple Listing Service®) HPI (Home Price Index) benchmark value for all types of condominiums (one, two or three bedroom) in Westshore increased by 20.90 per cent over last year from $327,200 to $395.700. It’s interesting to compare this to the MLS® HPI benchmark value for a condominium in the Victoria Core area which increased by 15.7 per cent over last year from $426,900 to $493,900. Comparative prices from last year to this are going up faster in the Westshore area as families and professionals shift their attention away from the less affordable Victoria core and towards vibrant communities like Langford.
Let us know if you’re interested in looking at a condominium at Triple Crown Communities. Residence 1 is now sold, but details about Residence 2 will are coming soon. Sign up for our newsletter The Winner’s Circle to ensure you’re one of the first informed.