It’s getting worse in the Victoria BC Real Estate Market | July 2022 | Victoria Housing Market
Vložit
- čas přidán 13. 07. 2024
- It’s getting worse in the Victoria BC Real Estate Market | July 2022 | Victoria Housing Market
The Victoria BC Real Estate Market has undergone a significant shift in 2022 that is unfolding as we speak. Low rates and low inventory fuelled a tremendous amount of pressure on prices in Victoria BC Housing that accelerated dramatically from the beginning of the covid-19 pandemic. That cheap money and credit that pulled massive demand forward seems to have come to an end and prices from the peak of this cycle could see declines as the market returns to more balance. A similar story is unfolding across most major Canadian Real Estate Markets but Victoria BC historically has seen less fluctuation over the last 15-20 years because of limited supply. Just shy of 2100 active listings and a strong rental market are helping to keep prices elevated but there a huge drop off in demand is putting downward pressure on house prices in Victoria BC, Canada.
There are 3 main explanations to the market shift in my opinion:
Intro: 00:00
1) It’s the summer! Canadians are enjoying the weather and vacationing with their families. Real Estate is further down the priority list 01:23
2) A historic change in the mortgage rates environment softening demand and buying power 02:02
3) A complete 180 degree change in buyer sentiment from the early months of 2022 04:51
Despite the fears that the Bank of Canada pushing interest rates higher too quickly could cause a recession, they seem to be stating a high level of conviction in doing what is required to reign in inflation and bring it back within their target rate of 2% by 2024. On June 1 we saw a 50bps interest rates increase pushing the policy rate to 1.5%. Prior to the pandemic rates had stabilized around 1.75% and following a massive 100 bps interest rate adjustment on July 13th the Bank of Canada’s policy rate now sits at 2.5%. Analysts believe this may reach 3.5% by the end of the year. On the positive side of the mortgage rates expectations discussion, 5 year fixed mortgage rates have stabilized just above 5% for most major Canadian Banks.
Canadian Real Estate Investing is in a challenging position but overall my perspective as a BC Realtor and Victoria Realtor is that over a 5+ year time horizon our beautiful city will continue to appreciate. Vancouver Island Real Estate is some of the most desirable real estate in Canada. You are investing in a lifestyle as much as you are investing in an asset class. Nevertheless, Victoria BC isn’t so valuable that it is insulated from the effects of massive changes to interest rates and demand. Real estate is sensitive to interest rates and it will be interesting to follow events over the next 6 months. As previous month’s statistics have explained, we have entered a balanced market and could see statistics that resemble a buyer’s market in August and as we transition into the fall.
What do you think will unfold in the Victoria BC Real Estate Market for the remainder of 2022?
Let me know in the comments below if you have ay questions about living in Victoria BC, moving to Victoria BC, or Victoria BC Real Estate. Feel free to reach out to me directly as well, I would be happy to answer your questions about Vancouver Island and the Victoria Housing Market.
______________________________________
Alex Carroll is a licensed real estate professional in the province of British Columbia serving the Greater Victoria Real Estate Market
Alex Carroll PREC*
Licensed Realtor
Engel & Völkers Vancouver Island
alex.carroll@evrealestate.com
alexcarroll.ca
Consider subscribing to this channel to stay updated on more from the Capital Map series and other bits of information on the Victoria BC Real Estate Market and living on Vancouver Island.
Let’s connect on social!
Facebook - / realestatevic
Instagram - / carrollgroupev
#VictoriaBC #VictoriaBCRealEstate #VictoriaHousingMarket
What are your expectations for prices in Victoria BC for the remainder of 2022?
Massive correction enroute. Wait until early 2023 data. Good deals on second hand Tesla's,? Feel bad for recent families who bought
@@adrienbancroft7895 What does that amount to in your eyes? Declines year over year from January 2022 to January 2023? How much?
Love the content AC! Those rate hikes are going to create some serious ripple effects across the country.
Thanks for the feedback Sam!
Thank you for your content. I hope to move there within 2 years.
It's a fantastic part of the country to call home! Good luck with the move!
@@AlexCarroll Thank You!
Do you think the median house price is skewed to higher end homes? Are places that were 1.1 million a few months ago actually going for 900k or is it more places that were 2.2 million are now 1.8 and skewing the 200k?
Hey Greg, good question. The average is likely the metric more effected by lower prices of luxury properties but less sales volume on that end will impact median. We do have just 13 sales so far this month above $2,000,000 compared to 31 in June. Average and median don't specifically correlate to specific home prices but do help us identify trends.
How many air b and b s will enter rental market when full recession takes hold. This will be bad..
There is fairly limited stock of zone transient buildings in Victoria BC and a lack of hotels in the downtown core. Don't believe many owners are concerned about a decline in tourism.
I just wish victoria wasn't so. Boring. Its sooo small, yet the roads are bottlenecks everywhere. Its weird.
It’s not that small really. The population of greater Victoria is approx. 397,000.
@@AlexCarroll bahahaha. 397k?sorry, that Is tiny. Sorry. There are 100k in 1sqkm in Toronto and i think Toronto is tiny. Just me though...
@@jonathankr I just spent the weekend in Cumberland with a population of about 5,000 so I guess it’s all perspective
Hodl
Hi Alex. Have you seen much under-bidding happening in the past couple of months since the market started to shift? Do you know any good mortgage brokers I'm looking to get a pre-approval so we can start looking. Cheers. Tyler
Hey Tyler, on the whole properties are selling below asking on average so there are negotiations between buyers and sellers occurring on price. How much of a discount will depend entirely on the property and circumstance. I know a few great ones, shoot me an email: Alex.carroll@evrealestate.com
Just don’t sell forehead.
What do you mean by this exactly?