Inventory slump keeps Victoria's third quarter real-estate sales suppressed
Published October 2, 2017
Low inventory continues to suppress real-estate sales throughout Victoria and southern Vancouver Island, according to the latest sales figures released by the Victoria Real-Estate Board.
Throughout July, August and September a total of 2,166 homes and commercial properties catalogued through the Multiple Listings Service exchanged hands, a drop of 18% compared to the same period last year.
The lack of re-sale housing inventory, says Victoria REALTOR® Marko Juras, is also working to keep prices buoyed despite signs of market equilibrium on the horizon.
“We’ve yet to see any tangible downward pressure on pricing,” says Juras, an agent with Victoria-based Fair Realty. “But that being said, there’s certainly less panic among buyers, fewer multiple-offer situations are materializing and my gut feeling is we’re starting to move closer to a more balanced market that isn’t so heavily skewed in the seller’s favour.”
The average cost for a single-family home throughout 2017 is $856,863. The median value is $754,500.
Available re-sale inventory, a key determinant of housing values, dropped a further 8% from 2016’s already low third quarter average of 2,105 properties.
And until more inventory hits the market, Juras says, Victoria’s sky-high real-estate premiums are unlikely to budge.
“There just isn’t enough re-sale inventory to create downward pricing pressure on the market. Last year we dealt with historic inventory lows, and this year inventory levels have dropped even further.” C
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