Today the April real estate sales data for Victoria was released. I was eager to get my hands on it and perform my own analysis. Instead of just comparing month by month, I'm more interested in the trends that are appearing.
As you can guess, the market is softening in the Greater Victoria area. The number of units sold in both single family homes and condo's is down by 10% and 16%, respectively. Please note that my figures come from a three month average compared to the same three months last year to smooth out single month anomalies. Townhouses are bucking the trend and still showing a slight increase over last year. The common belief is that down-sizing baby boomers are driving the townhouse market upwards.
Although the median price is still increasing for all market segments, this can be misleading! Several higher end sales are pushing up the single family median price. Of course, construction and renovation costs are playing their part. The median condo price is being pulled up by sales of new construction. When we look at prices of individual units the picture is a bit different. Pricing is very sensitive! Inventory has increased significantly and so overpriced properties are not selling.
Here's a little more on inventory. Each year, we expect inventory to increase at this time of year. It is cyclical and happens because more people decide to sell their home in the Spring. The maximum number of listings is usually reached in June or July. This year, again using the 3 month average, the number of properties available for sale is 14.5% ahead of the same period last year. That's a big increase. However, our market is fairing much better than many others. Have a look at the Calgary real estate market and you'll see a much bigger increase in inventory.
If you are selling your home you had better make sure your pricing is right on. Well priced properties continue to sell quickly. There are lots of great examples of this. But, buyers know that the market it tilting in their favour and will pass by overpriced homes.
If you are a buyer, you've got a great opportunity. There are lots of homes to choose from and you may be able to get a better deal than you could a few months ago.
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