Paulette Marsollier introduced our speaker, Cheryl Woolley, President, Victoria Real Estate Board. Cheryl was in business for 25 years before getting into real estate. Originally from the Maritimes, she has been in Victoria for 15 years.
The Victoria Real Estate Board provides services to realtors and the public. In 2018 prices here started to moderate. The average single family home and condo prices increased slightly. April to June saw the most sales and the most inventory on the market. People from out of the province usually look in Sooke where prices are lower for new homes.
What is selling ? The Single Family Home Price Index (HPI) is the $ value X sales. It is the best indicator of what the market is doing. The average home price is skewed by a few very high priced homes. The HPI shows what is most popular. HPI in the core area increased for condos from $386,000 to $502,000 in 1 year.
Who is buying ? There has been a lot of talk about foreign buyers, but they are not looking in Victoria. 90% of buyers are already BC residents. 13 % want a larger home and 8.2 % want to downsize. 12.8 % are relocating in the province and 11.3 % want a different neighbourhood. The majority of buyers are 2 parent families and empty nesters. They mostly use the real estate portal or a realtor.
2019 will see more inventory and less urgency, a more balanced market. There is continuing demand at an attainable price point, especially condos in the $300-600,000 range. Rents are expected to continue to rise. Interest rates will be stable and house prices will increase less than 1%. BC employment is expected to be strong and Victoria will have a record high in new construction of rental housing.
There was a question about the relationship between assessed value and resale. Assessments are about 9 months behind market value.
The effect of the speculation tax is negligible in Victoria. If you rent your unit more than 6 months a year you are not affected.
Carol Nielson thanked Cheryl and presented her with a card indicating that Harbourside Rotary had funded meals at Our Place