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Victoria Real Estate Market Update-April 2021

Posted by on Tuesday, April 13th, 2021 in Victoria Real Estate News

 

April 2021:

The month of March was like no other in Victoria when it came to the real estate market.  There were almost 1200 sales for the month compared to a seasonally averaged number of about 750. Prices are setting records with multiple offers in the $100,000-$300,000 range above list prices and listing inventory remaining at an all time low for the spring at just over 1300. All of this has created quite the story. Headlines are plentiful with articles on bidding wars, housing unaffordability and will there be a market crash. Unfortunately, for those who have become outpriced in this market, the high demand for properties in Victoria and Vancouver Island and in BC in general, seems to be the new norm with no end in sight. The Government has made recent announcements regarding mortgages, and are increasing the stress test on mortgage approvals, which is an attempt to slow the hot market. We will see where this takes us in the coming months. In the meantime, if you are buying and selling, make sure you discuss all of your options with your realtor before you set sail in these uncharted waters.

Below are the statistics for the month of March 2021.

Listing Inventory:

There were 1,310 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of March 2021, 41.8 % fewer properties than the total available at the end of March 2020 and 0.6 % properties fewer than the 1,318 active listings for sale at the end of February 2021. This low listing inventory will keep the prices high in the Greater Victoria market for months to come.

Sales:

A total of 1,173 properties sold in the Victoria Real Estate Board region this March, 92.9 % more than the 608 properties sold in March 2020 and 35.9 % more than the previous month of February. Sales of condominiums were up 111.8 % from March 2020 with 377 units sold. Sales of single family homes were up 88.2 % from March 2020 with 574 sold. Sales were indeed significantly higher than one year ago. However, we were in a lock down for the latter half of March 2020, so this is not a surprise. However, the average sales in March are about 750, so the March 2021 numbers were still incredibly high for this time of the year.

Average Prices:

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in March 2020 was $879,600. The benchmark value for the same home in March 2021 increased by 10.1 % to $968,700 a 2.2 % increase from the previous month of February. The MLS® HPI benchmark value for a condominium in the Victoria Core in March 2020 was $531,800, while the benchmark value for the same condominium in March 2021 remained close to last year’s value at $529,100 a 0.5 % decrease. Consistent during COVID times has been the huge demand for single family homes. This has been the driving force for price increases. 2% increase per month is unsustainable yet this has been the monthly average since December 2020. How much higher can they go is anyone’s guess, but I think we must be close to the top. Especially with the Government now starting to step in to try and cool things off. Interesting times.

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