“There’s more buyer demand than we can supply right now,” Mike Nugent said on Monday (January 9), as reported by the Toronto Star
“In Victoria, because we’ve got so few places available — all our projects are sold out — and because of the shortage of inventory even though sales will be less, we expect prices to continue to keep inching up.”
Migrants from other parts of the country are taking advantage of Victoria’s strong fundamentals, the official added. In particular, baby boomers from Vancouver are trading their B.C. properties for similar (or even larger) homes that can be acquired for much less.
“Our economy is one of the best in the country right now,” Nugent explained. “We’ve got lots of jobs happening in all sectors. That’s attracting everybody.”
However, contrary to initial predictions, the Victoria real estate segment has yet to experience a surge of overseas capital following the implementation of a 15 per cent foreign buyer’s tax in B.C. in mid-2016.
“There’s certainly no evidence so far of showing a big shift of foreign buyers to Victoria,” Nugent said.
Healthy inbound migration is predicted to play a major role in the gradual upward climb of Victoria home prices this year, according to the province’s outgoing real estate board chief.