Victoria’s real estate market typically peaks in May, but those involved in the buying and selling of homes in the region say May bled into June this year as the first half of 2014 finished strong and kept agents and mortgage brokers hopping.
“It’s definitely been busy. Most agents I’ve been talking to are busier than they have been in years,” Victoria Real Estate Board president Tim Ayres said. “It’s hard to say why, but there’s been a bit of a return of confidence in the general economy and people are realizing that low interest rates aren’t going anywhere anytime fast.
“At the same time, housing prices have come down in the last few years, and all that’s come together to [suggest] it’s not a bad time to buy or sell.”
In its most recent statement, the board noted May and June represent the top two sales months the region has seen since the spring of 2010.
Through the first six months this year, the region saw a nine per cent increase in overall sales to 3,387. The average number of days it took for a home to sell dropped to 70, compared with 78 last year.
“I know we’ve been abnormally busy, especially in the last month,” said Scott Travelbea of Travelbea and Associates Mortgage Specialists.
Travelbea said that despite the tightening of lending rules, which has made qualifying for a mortgage tougher, he’s seeing a lot of first-time home buyers keying on single-family homes with suites.
“I’m very confident with the market right now. We have rates that are stable. You can get a five-year fixed rate at below three per cent and we’re seeing buyers coming in for pre-approvals for the purchase of condos as well as houses with suites,” he said.
That’s been the hottest segment of the market, agreed Nicole Burgess of Pemberton Holmes Real Estate.
“What I’m seeing right now are single-family homes in the core selling well — but even better with a suite. They are hot,” she said. “Often they will sell in the first week if they are priced right and they will go close to full price.”
Pricing seems to be key.
“[Buyers] are not willing to compromise on higher prices, and for those sellers not willing to come down to market prices, there’s little tolerance among buyers,” she said. “But good product in a good area at market value — it will sell.”
In June, 680 properties sold in Greater Victoria, up from 664 at the same time last year but down slightly from the 714 in May.
The benchmark price for a single family home in the Victoria core area last month was $556,200, an increase of 1.8 per cent over June 2013. That was down slightly from $568,500 in May of this year.
The benchmark price is used by the board as it is seen as a more accurate reflection of the market than an average or median sale price because it tracks price levels for a typical home in a given community.
The benchmark price of a typical condo in the region increased slightly to $285,900 from $282,800 in May. The benchmark price for townhomes was $406,100 in June, down from $408,100 in May.
While the market is considered balanced and agents have been busy, the condominium and townhome markets are a little slow, Burgess said. “There’s a lot to choose from, lots of competition.”
So far this year, 831 condos have sold in the region, an eight per cent increase over last year. But there has also been a three per cent increase in the number of units listed — 1,795 so far this year.
Daryl Simpson, vice-president of Bosa Properties, which started moving buyers into the 177-unit Promontory building on Saghalie Road this week, said that as long as a condo property is good value, it will sell in a market with plenty available.
The Promontory had about 20 units left to sell at the end of June.
“There has been so much talk over the last two or three years about whether there was a housing bubble or no bubble, or if there could be a correction. Well, we feel pretty confident that those concerns have been laid to rest — the market seems to have found its level,” Simpson said. The Victoria market has been an education for the Vancouver-based company, which came to realize that buyers like to see a completed building before signing on, he said.
Simpson said that in the early stages, as the condo building was coming out of the ground, the buyers tended to be young. With the suites now finished, sales are skewing to people in their mid-50s. But it’s always been a local buyer.
“In this market, the local, south Islander is our buyer,” he said, noting while sales took time, they have been strong enough for Bosa to contemplate another tower on the Bayview building site.
The timing of that project, however, is likely to depend on the progress of the Roundhouse development as well as other Bosa Properties projects.
“We hope we will do more work here. When we develop here in Victoria, we hope it’s here because we think it’s the best real estate [in the city],” he said of the Songhees property.
