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Low inventory keeps Greater Victoria real estate prices up

The Greater Victoria real estate market remained busy in October with 735 homes changing hands.

 

The Greater Victoria real estate market remained busy in October with 735 homes changing hands.

While the number of sales was down slightly from September, it was on-par with last October when the housing market started to heat up, noted Victoria Real Estate Board president Mike Nugent.

Nugent also pointed out demand is still out-stripping supply in the region, which has kept prices high and many single-family home sales going for more than the listed price.

There were 1,938 active listings on the Multiple Listing Service at the end of October, well below the 3,170 listings at the same time last year.

“We continue to see low inventory hindering sales in the local market,” said Nugent. “Though our numbers are down from the record setting pace set this summer, the market is still moving quickly and is still very competitive for certain properties.

“High demand areas like Saanich and Oak Bay continue to see multiple offers and areas in the West Shore are also seeing sales over listed prices. In other areas, prices remain firm because of high demand and extremely limited inventory.”

New federal mortgage lending rules have also had an impact on buyers, said Nugent, noting some buyers have had to lower their expectations more in line with the mortgages they qualify for.

The benchmark price for a single-family home in the Victoria core in October increased by 24.1 per cent to $755,000 compared with October 2015.

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.