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GREGORY’S MARKET SNAPSHOT

Buyers of all sorts will appreciate some excellent rates, as well as an increase in listings giving a lot of choice. But, there are two markets where a buyer may feel the pressure of a market that’s stabilizing: Condos and Townhouses. Condos sales were red hot this time last year, and while it has cooled there is still lots of activity with a 70% sell/list ratio. The townhouse market is slightly more competitive, meaning you’ll want to be getting very current listing information if you plan to purchase soon. Viewing both of these types of properties before their first open house is a great way to create some breathing space for your decisions, and it will also allow us to track their activity so we don’t miss out.

When to sell? This is still a good time for entry level homes, condos, and townhouses. These markets are seeing an average of 98-99% of their listed price within 40 days. Condos and townhouses are thriving as more purchasers are seeking these as alternatives to detached entry level homes. The HPI has seen some softening in the average home price, but homes for under $700k it’s a thriving market. In all of these markets expect some busy open houses, and lots of negotiating. If you have a luxury home or waterfront property, and can wait, then the Spring may be a better timing to see your full value. If you’re ever in doubt on timing, feel free to reach out and we’ll make a plan!

GREGORYS TAKE ON STATISTICS

Residential sales pick up slightly, with a 16% increase of sales compared to last June. We’re still working through a buildup of inventory from a slower spring sale season, and there is still a large supply of over 1000 affordable residential houses (up 32%). Its a great time for options in purchasing, and it feels like this season will push into August because of the slow start.

Waterfront and acreage home sales are still down 14-22%. No signs of change here, so you may want to wait until next spring before considering to sell. The average waterfront home only gets 91% of its listed price – anyone that wants to sell has to be prepared for heavy negotiating.

Condo sales remain steady, and inventory is peaking here as well. While there are very few options under 250k, many options are entering the market in the 300-500k range (+48% from last June). Well priced condos are selling fast and seeing immediate offers, so contact me quickly if you see an attractive condo during the week. Waiting for open houses has been too slow this past month.

Townhouses are following the house market, with similar ratios all around. We will probably see these continue to replace the first time housing market, as one of the best alternative options for young families. With housing prices stabilizing and starting to climb again, young couples should start doing their research on this market. If the new legislation for first time buyers comes through, this will only get more competitive. Contact me if you haven’t heard of the proposed legislation and its timeline!

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April Market Summary

Comparatively, month to month last year Victoria’s total house sales dollars are down (-12% from April last year) and the total available listings are up (+48%). The media and the board talk about a market that is “causing many buyers to step back while they save more money for a down payment” according to Victoria Real Estate Board President Cheryl Woolley. However, it’s not the full picture because Victoria has many smaller markets.

Waterfront properties have slowed down the most, with less sales than past April (-43%). The average days to sell a waterfront property is up to 78 Days, from 52 days and the
sell/list ratio is very low at 26%. Combined, this signals that we’ve switched into a Buyers Market for waterfront property. This could be an excellent opportunity to upgrade before the quality waterfront properties pull their listings and wait out next spring.

Condos have been appreciating nicely, selling quickly, and generally have a lot of activity – while volume is down (-10%), price has increased (+8%) and it almost entirely balances out. Last year at this time it was a Sellers market for condos, with a sell/list ratio at 66% and the average days to sell at 21 days. We’re moving into a more balanced market for condos, with sell/list at 57% and 37 days to sell. Many of the best condos are getting offers the same day they are listed, but it’s not a total feeding frenzy. I expect we will stay there for a while, as the stress test has pushed more first time buyers and young families into this market. If you have been waiting for the market to crash or hesitant due to the media reports, it’s a good idea to look at some condo specific statistics with me.

As always, statistics can be interesting but it’s best to have someone look at your specific situation before making decisions. You might not love numbers, but want a clear plan and explanation for your own situation, and I’d like to help. With offices off Oak Bay, Chatterton, and Jacklin road we should be able to find a convenient place to meet and add value to these numbers.

Click here for the full report.