After months of historically low inventory levels, more home sellers in the region are starting to appear.
The Victoria Real Estate Board said there was a slight increase in the number of homes listed for sale in Victoria.
“[During May], we have seen an increase in inventory, which means that buyers have more choice, and it means that now in some areas sellers are competing for buyers,” said board president Ara Balabanian.
There were 1,896 active listings for sale at the end of May, up from 1,690 at the end of April. However, the number of available homes remains well below last year’s level when there were 2,406 active listings for sale at the end of May.
Last month, there were 1,006 properties sold in the region, a 13.7 per cent increase from the 885 sold in April, but down from the 1,289 properties sold in May of 2016.
“There are many different market conditions in Victoria, because we have so many different neighbourhoods and different levels of demand for those neighbourhoods,” said Balabanian. “The market won’t change immediately, but we can track a shift as more inventory enters the market to meet the demand from buyers.
“Overall, pressure on pricing is easing because of the increase in inventory and the rate of increase of price is normalizing. As we have predicted, we are seeing the beginning of a gradual return to a balanced market in the Victoria area.”
The benchmark value for a single-family home in the Victoria core is now $825,500, a 16.8 per cent increase from the $706,500 established in May of last year.
A lack of inventory is still a problem north of the Malahat Drive, according to the Vancouver Island Real Estate Board, which monitors all other market areas on the Island.
There were 632 single-family properties sold last month, down from 765 in May 2016.
Inventory of single-family homes declined by 28 per cent compared to last year with 1,210 active listings available last month versus 1,681 one year ago.
“Limited supply, combined with high demand, means it has been a sellers’ market for months. Sellers are in the driver’s seat, and the lack of inventory is frustrating buyers and real estate agents alike,” said Island board president Janice Stromar.
