June set a new price record for single-family-homes in the BC Capital amid the lowest volume of available re-sale inventory ever seen for the month, according to data released by the Victoria Real-Estate Board.

 

 

Houses from Sooke to Sidney averaged $1,218,176 in June, toppling January’s then-record high of $1,204,817, while also setting a new median record (the exact mid-point price of all homes sold) of $1,049,000 that surpassed the $1,022,000 record set in March. The volume of sales fell compared to May, however, with 440 total purchases compared to 537.

 

Single-family-home sales have been sliding month-over-month since March when they peaked at 574, a trend largely attributed to a pull-back on re-sale listings as homeowners hang on to inventory out of concern that getting back into the market could be difficult.

 

“It’s tough to say whether the lack of inventory is putting upwards pressure on prices, or whether higher priced properties nudged up averages amid sales nearly 100-homes short of May,” says Victoria REALTOR Marko Juras. “We’ll get a better idea of market drivers come July and August, although we are anticipating an overall slow-down throughout the summer as people take advantage of travel opportunities, vacations, and social pursuits that can conflict with home listings and home buying.”

 

All sectors of the market pulled together to surpass June of 2020’s 808 transactions by nearly 17%, landing at 942 sales. But active residential listings, sitting at just 1,037 for the month, represented the lowest inventory for June since records are available starting in 1996. Coupled with commercial properties, active inventory reached 1,375-units, considered just a fraction of healthy market availability.

 

Condominiums continued their valuation push higher with an average sale price of $536,276, slightly above the $536,068 average set in May. Transactions eclipsed May's 325 to settle at 338, while the median price paid was $485,000.

 

“Two-bedroom, two-bathroom condos on the West Shore continue to be sought after, while the downtown Victoria market, traditionally the biggest and most in-demand condominium market on the south Island, has certainly stabilized in recent months with healthy interest among buyers for all product categories,” Juras said.

 

Townhomes maintained an average above $700,000 for a third month in a row with $723,289 in June, and a $703,000 median. Sales fell from 126 in May to 99.

 

June was also the first month with a higher purchaser stress test, which saw buyers factor in a qualification interest rate of 2% above their bank rate, or 5.25% (if higher). The former maximum qualification rate was 4.79%, which saw buyers lose approximately 5% of buying power by reducing their qualification parameters when compared to May.

 

“The adjusted stress test rate did not appear to have had much of an impact on Victoria’s real-estate market, as buyers typically will find a way to come up with a larger down payment if they cannot qualify under a higher stress test rate,” Juras said, adding that where “more impact will be felt through rising interest rates and how they affect monthly payments, which appears to be happening now.

 

As for the rest of the summer, Juras anticipates the market to lose both demand and re-sale inventory listings as British Columbians turn to vacation plans, which for many will be the first chance at a getaway since the spring of 2020. C

 

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