As Vancouver homeowners cash out – and others are priced out of that market entirely – Victoria seems to be benefitting, with sales breaking records and agents gleefully saying “I told you so.”
“If you have read my blogs over the last few years you would see that the Victoria real estate market was undervalued and ready for a significant market upturn,” Dale Sheppard, an agent with RE/MAX, said in a monthly update, which was obtained by REP. “However, no one could have predicted the rapid ascent that has transpired over the last 60 days.”
According to Sheppard, inventory has dropped significantly over the past year and record-low rates are encouraging purchases. Average monthly sales are approaching record highs.
That is due to the aforementioned reasons, as well as a new phenomenon, according to Sheppard.
“Vancouver residents that have decided that now is the time to sell their high priced home in Vancouver, and they are choosing Victoria as one of their main cities to move to,” Sheppard said. “Victoria is now a prime destination for Vancouver residents who have basically won the lottery by obtaining extremely high prices for their homes and are now cashing in and leaving the big city and moving to Victoria.”
According to the Canadian Real Estate Association’s most recent stats, the average price for a home in Victoria jumped 13.2% year-over-year in March to $575,858. Sales, meanwhile, shot up 51.1 for a total of 1,065 units sold that month.
And agents in that area will surely keep a close eye on what’s to come for this booming market.
“The next few months seem to be poised for the same amount of heightened market activity, as there appears to be no shortage of buyers. The listing inventory is shrinking, with only about 2600 available residences for sale today compared to about 4000 a year ago,” the agent wrote. “The April 2016 sales numbers are predicted to hit around 1200 compared to 840 for April in 2015. Simply put, supply and demand factors alone show why prices are rising rapidly. It is going to be very interesting to see where this ends up over the course of 2016.”
It’s a market in which many agents have predicted sales and price hikes – has that time come?