Is the Victoria BC Real Estate Market Collapsing? | June 2022 | Victoria Housing Market

Is The Victoria BC Real Estate Market Collapsing? | June 2022 | Victoria Housing Market
The Victoria BC Real Estate Market has undergone a significant shift in 2022. Low rates and low inventory fuelled a tremendous amount of pressure on prices in Victoria BC Housing that accelerated dramatically since 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 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.
The Bank of Canada is in a precarious position where they are balancing the effects of inflation with the challenges created to the global economy by the conflict in Ukraine. Their latest 50bps interest rates increase on June 1 pushed the policy rate to 1.5% (just .25% shy of its policy rate prior to the pandemic). Meanwhile, most major Canadian Banks have 5 year fixed interest rates north of 4%.
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.
What do you think will unfold in the Victoria BC Real Estate Market in 2022?
Let me know in the comments below if you have ay questions about living in Victoria BC, moving to Victoria BC, Victoria BC Housing, 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.
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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
[e-mail]
alexcarroll.ca
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[@AlexCarroll]

Hi everyone! Hope you liked this update!
Let me know where you think Victoria BC Real Estate is headed for the remainder of 2022. Do you think there will be some good opportunities as the Winter approaches?

[@arnmt4]

Well explained without hype. Thanks

[@AlexCarroll]

Thanks for that feedback Tony! Greatly appreciated!

[@Karma-zx8qe]

Ballin off interest from real estate bridge loans still...

[@stevewise1656]

You all need Uber or Lyft in Victoria.:) Really don't understand the ban and it's difficult to get a taxi, so seems backwards. Beautiful and do want to buy a home there soon.

[@AlexCarroll]

It’s a great point. Taxi companies deliver an outdated service model.

[@adamlockwood331]

I love your content. Thank you

[@AlexCarroll]

Thanks for the feedback Adam - We will keep videos like this coming.

[@lakdev6297]

Buying homes right now is like catching a falling knife 🙄🙄🙄

[@AlexCarroll]

In which market? How much do you expect Canadian home prices to decline in 2022?

[@Karma-zx8qe]

Catch it careful is all...

[@bill...9566]

Typical realtor. Do you live on fantasy island

[@AlexCarroll]

You think this take is overly sugarcoated? What is your prediction for the Victoria Real estate market? I encourage an and all opinions on this channel. Discussion is healthy. Suburban markets that saw overheated demand during the pandemic are different to our little city on the rock.