A severe lack of inventory and strong in-migration has driven the median price of all types of homes in Greater Victoria up by 27.7 per cent in the past year, according to a new house price survey from Royal LePage.
The survey noted the median price of a single-family detached home in the region increased 34 per cent to $1,135,700 over the last year, while the median price of a condominium increased 24 per cent to $472,000.
Neil Bosdet of Royal LePage Coast Capital Realty said having 2,500 listings is generally considered a balanced market in the region, yet there are currently fewer than 1,000.
“That competition puts upward pressure on prices, forcing some buyers to look at properties that are smaller or further afield, in order to afford something within their budget,” he said.
The pressure has been increased with strong in-migration from across the country.
The survey cited Statistics Canada figures showing more than 34,000 Canadians came to the province over the last year.
Bosdet estimated a third of his clients are buyers from outside the region, adding that has started to build through the pandemic as people find they are able to work from anywhere.
“Victoria is a world-class city with a healthy economy and access to beautiful nature. It attracts not only retirees, but also young families and professionals who have chosen the area for the lifestyle,” he said.
The increase in housing cost has been mirrored across the country. The survey noted the median price of a home in Canada increased 21.4 per cent year-over-year to $749,800 in the third quarter of 2021.
The survey suggested market activity slowed as a result of a chronic lack of inventory, a persisting challenge for housing markets from coast to coast, coupled with the seasonal summer slowdown.
“During the third quarter, the torrid pace of home price appreciation moderated as both demand and inventory waned, a typical summer market trend in a very atypical year. With easing pandemic restrictions, there was finally something to talk about other than real estate, and people began travelling and socializing again,” said Phil Soper chief executive of Royal LePage.
Royal LePage has forecast that the median price of a home in Canada will increase 16 per cent to $771,500 in the fourth quarter of this year.