Purchases of re-sale properties throughout the Capital Region have dropped by 21% year-to-date over last year as a lack of re-sale inventory and high prices suppress purchasing opportunities. The sales of un-built pre-sale offerings, however, remained buoyed. Citified.ca
Real-estate sales drop 21% as Victoria market struggles with inventory squeeze, affordability
CITIFIED.CA STAFF
Published August 1, 2017
Property sales throughout the Capital Region are down 21% year-to-date compared to the same period last year, according to Multiple Listings Service (MLS) sales statistics released by the Victoria Real-Estate Board (VREB).
5,771 homes, parcels and commercial lots listed on the MLS changed hands throughout the first seven months of 2017, a drop of 1,527 transactions from 2016’s seven month running total total of 7,298.
Although demand for Victoria real-estate remains high and bidding wars between buyers have become a part of the market’s normal rhythm, REALTOR® Marko Juras of Victoria’s Fair Realty says several factors have combined to suppress the region’s real-estate sales activity.
“Affordability has most certainly become a factor in Victoria, where the year-to-date average sale price between January and June was $855,000 for a single-family home while re-sale inventory has lagged, which in turn has driven up and helped to maintain higher re-sale values,” Juras said.
Juras maintains, however, that one segment of the real-estate market, which is not tracked by the VREB, continues to draw hundreds of buyers every month who opt to pre-purchase unbuilt or under construction properties in lieu of joining the masses shopping for move-in-ready homes.
“The data of pre-sale housing inventory is not tracked by the real-estate board, but anecdotally myself and my colleagues estimate there are several hundred monthly sales of un-built condominiums, townhomes, single-family homes and buildable lots on southern Vancouver Island. And with re-sale inventory being as tight as it is, more buyers are inclined to shop for unbuilt homes rather than face bidding wars on desirable re-sale properties.” C
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