Monday November 2, 2020 | GREATER VICTORIA
by Mary P Brooke, editor | Island Social Trends
The cost of living in Greater Victoria has always been high due to the unshakably confident real estate market which keeps housing prices artificially buoyant.
The great appeal of living in the south Vancouver Island region is obvious… the amazing temperate/Mediterranean climate that allows for outdoor activity virtually year round and an extended growing season.
For about 30 years now, the development and real estate sectors have capitalized on the production and turnover of residential properties, many of which are used as ‘mortgage helpers’ (in-law suites within single family homes that are rented out for income) and as rental properties (renting a full home, or a house split up into suites).
The desire for more living space during the pandemic has fueled a robust real estate market in Greater Victoria in the second half this year.
In September the average house sale price in Greater Victoria was over a million dollars at $1,075,891 (Victoria Real Estate Board stats).
- In the areas considered more affordable yet nearby to the core, the single family home sale price averages were $927,066 (Colwood), $813,745 (Langford), and $754,113 (Sooke).
- The average sale prices in September for townhouses were $567,000 (Colwood), $507,570 (Langford), and $473,000 (Sooke).
- The average sale price for condos in those western communities in September was $438,000 (Colwood), $402,333 (Langford) and $376,575 (Sooke).
In October the average house sales price in Greater Victoria at $1,037,389 was only slightly lower than we saw in September.
- In October, single family homes in Langford on average at $874,284 Colwood, at $810,446 in Colwood, and in Sooke at $754,742.
- Townhouses sold on average in Greater Victoria at $635,676 in October; in Colwood the townhome average sale price was $600,733, in Langford it was $557,426, and in Sooke was $497,815.
- Last month, condos sold on average at $496,701 across Greater Victoria; in Colwood the average sale price was $507,725, in Langford $425,615, and in Sooke $469,960.
Sales volume ‘surprises’ VREB president:
A total of 990 properties sold in the Victoria Real Estate Board (VREB) region this October, 59.9 per cent more than the 619 properties sold in October 2019 and 0.1 per cent more than the previous month of September, it was stated in a VREB news release today. Sales of condominiums were up 70.8 per cent from October 2019 with 304 units sold. Sales of single family homes were up 53.1 per cent from October 2019 with 487 sold.
“Once again, another month concluded with numbers that surprised many of us,” said Victoria Real Estate Board President Sandi-Jo Ayers. “Sales for October broke the record for the month and inventory continues to be snapped up quickly. Due to this high demand, low supply environment, we are seeing many multiple offer situations. Condos and single family homes both continue to be popular choices for buyers.”
There were 2,122 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of October 2020, 19.7 per cent fewer properties than the total available at the end of October 2019 and a decrease of 11.2 per cent from the 2,389 active listings for sale at the end of September 2020.
Pent-up demand and ‘advance’ buying:
“We have mentioned previously the pent-up demand – how sales that were depressed over the spring because of the pandemic occurred later during the summer,” says Ayers.
“These delayed sales resulted in higher than average numbers for our summer and early fall market,” adds Ayers. “We may also be seeing some brought-forward demand – where people are making their future moves now. In part this may be to take advantage of lower mortgage interest rates. It may also be because of our current public health situation.”
“Some people may be anticipating a slow down in general activity over the winter months due to the course of the pandemic and so are accelerating their plans. This may mean continued heightened sales activity through the fall and early winter, which is contrary to our normal market trend. In a normal year, we would see a tapering off of activity leading to the winter season, but thus far we have seen sustained sales and demand through October,” said Ayers, who is a Realtor with RE/MAX Camosun.
