Victoria’s Real Estate market stands on stable footing…

On average, healthy year-over-year house price gains were recorded in most districts in Greater Victoria during the first three months of 2008. While more modest price increases were observed, when compared to previous quarters, the solid appreciations noted in the first quarter were largely due to the shared effects of our resilient local economy, high immigration levels, and relatively low interest rates, all leading to stable buyer demand.

Real estate buyers in the Victoria area now have a growing number of properties from which to choose. The total number of properties available for sale rose to 3,591 in March 2008 - a 17% increase over March of last year. This return to a balanced market is good news for both buyers and sellers. With more properties available for sale, buyers now have a greater selection, but the continued demand for homes and steady prices mean sellers can still anticipate strong interest in properties that are realistically priced. Buyers will learn to recognize good value and Sellers will have to be sharp with their listing prices to attract a buyer’s attention with the added competition.

Victoria’s market has returned to an environment characterized by moderate house price increases, and these conditions are far more agreeable to those searching for a home, and are more sustainable in the long run than the sharp price increases recently experienced. Historically, (during my near three decades in this industry), when we experience inventory increases, we also typically see the selling periods increase. We will see house prices and market activity tempered from the frenetic pace that described the previous past few years and the increase in supply of homes should help to calm Victoria’s resale market.

Don’t panic on house prices. Toronto-Dominion Bank predicts that Canada will dodge the turmoil afflicting the U.S. housing market because it avoided the high-risk loans commonplace below the line. Further, B.C. householders fearing that the U.S. recession will hammer real-estate prices can relax; the provincial market will gradually cool rather than collapse. Slower economic growth will cause price increases to ease, as will the elevated cost of home ownership. Should you want to further discuss the market, or have any question regarding your own Real Estate needs, I would be happy to be of service. Call me…Let’s Talk.