Real estate sales continue to slow down across Greater Victoria. Black Press File

New measures continue to drag down Greater Victoria real estate sales

New figures from Victoria Real Estate Board show sales took another hit in June.

Sales in June 2018 dropped almost 30 per cent compared to the same period last year as 708 properties changed hands. Compared to May 2018, sales dropped 6.2 per cent.

Kyle Kerr, VREB’s president, said June typically signals the conclusion of the busy spring market, as activity lightens into the summer. “However, because of decelerating growth due to aggressive government implementation of policies to reduce demand, Victoria’s real estate market has been hobbled since the start of the year when federal restrictions around mortgage qualifications were rolled out.”

In fact, Kerr thinks some these numbers reflect measures that have not even come into effect yet. Measures such as the pending speculation tax have already deterred buyers, with consumers waiting on the sidelines to see what happens.

Sales for single family homes were “very weak and [under-performing] substantially,” said Leo Spalteholz, realtor with Fair Reality, said on his blog House Hunt Victoria.

“The dramatic dropoff in single family sales since April is quite astonishing especially compared to last year where sales increased in that period,” he said. “Single family sales are down 45 [per cent] compared to a year ago and a quarter below the 10 year average. July is usually where we see a steep drop in sales so it will be interesting to see if things really grind to a halt this month.”

As sales have slowed down, inventories have risen. At the end of June 2018, records showed 2,595 listings, an increase of 8.4 per cent compared to the month of May and 35.5 per cent more than the 1,915 active listings for sale at the end of June 2017.

“The good news is that inventory is slowly being added to the market, though we are still very far off from our ten year average inventory level of 4,100 listings,” said Kerr.

Prices, however, continue to go up — at least for now. Home Price Index (HPI) benchmark value for a single family home in the Victoria Core in June 2017 was $829,600, while the benchmark value for the same home in June 2018 increased by 7.2 per cent to $889,600, higher than May’s value of $878,100, according to VREB.

Spalteholz’s analysis however shows that median prices for single family detached homes, as well as condos across the region are heading downward.

“It seems clear that prices are at best flat and potentially starting to see some declines on the detached side which isn’t overly surprising given the weakness in sales in the last two months,” he said. “What is surprising to me is that condo prices have been flat as well all year even though sales have not dropped as much and inventory is still extremely tight. It seems that either condo buyers are cautious about what they’re buying and focusing more on the lower end, or the stress test has forced them there.”

Looking at figures for Saanich, they show sales in Saanich totaled about $82.8 million for single residential homes. Condominium sales totaled about $18.9 million. Townhouse sales totaled 12.81 million.


Like us on Facebook and follow us on Twitter

wolfgang.depner@saanichnews.com

Just Posted

Saanich passenger caught smoking weed in a car issued $230 fine

Saanich police did a field sobriety test on the driver and deemed it safe for him to drive

VIDEO: Tent city moves to Woodwynn Farm, arrests made

The group is asking the government to provide housing for 60 tent city members

Cougar spotted Saturday morning in Saanich

Police found paw prints consistent with cougars in the area

Colwood Elementary gets new inclusive and accessible playground equipment

Parks and playgrounds on the West Shore have equipment for everyone

B.C. Guide dogs is looking for volunteer puppy raisers

Labrador retrievers need to learn obedience and socialization before heading to work

WATCH: Twelve Angry Jurors puts a new spin on an old tale

Canadian College of Performing Arts opens season with reworked version of Reginald Rose teleplay

Team Canada gold medal winners for first time in world curling championship

Team Canada earned gold in Kelowna at the 2018 Winn Rentals World Mixed Curling Championship

Crime Stoppers most wanted for Greater Victoria for Oct. 19

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

POLL: Do you support amalgamation for communities in the Capital Region?

Residents in Victoria and Saanich will be voting on Oct. 20 on… Continue reading

Payette invites critics to ‘come and spend a few days’ with her

Governor General Julie Payette made her first official to B.C. back in March

More pot stores expected in B.C. in coming ‘weeks and months’: attorney general

Attorney General David Eby and Public Safety Minister Mike Farnworth visited the new BC Cannabis Store in the province’s Interior

Telus launches charitable foundation to help vulnerable youth

The Telus Friendly Future Foundation complements other social initiatives by the company, including Mobility for Good

Police say suspicious death of B.C. artist ruled a homicide

Patrick Zube Aylward’s body was found in a residence on a rural road outside of Seton Portage, west of Lillooet, B.C.

Temporary roads being built in areas affected by landslide in northern B.C.

Emergency Management BC news release says Disaster Financial Assistance is available to eligible residents of the Peace River Regional District who may have been affected by the landslides

Most Read