December 2017 Market Update

Dockside Update: December 2017

2017 was a slower year overall for the Greater Victoria Regional District real estate markets, there were 15.8% fewer sales than in 2016.  With the multiple offer scenario diminishing, the market has moved from a seller’s market to a more balanced market between buyers and sellers. The lower inventory still created some multiple offers as buyers negotiated in a tighter market. The now imposed tougher Lending Stress Test effective January 1st did encourage many buyers to step up and buy in November and December before the regulations kicked in.

The Victoria Real Estate Board reported a 7.3% decrease in listings at year end 2017 vs 2016.

The MLS Home Price Index Bench Mark Value for a Single Family Home in the Victoria Core 2016 was $753,900, and in 2017 it rose by 9.3% to $823,800. Victoria had not seen any price decreases for several years so this was a historical record. It did dip down slightly in December by a few thousand dollars, the second reduction in the Victoria Core in 2017.  The prediction for the Victoria Core this year is for a continued balanced market with pricing remaining stable.

The Victoria Core market trends affects our Gulf Islands Markets.

Pender Island currently has an all record low inventory of 42 Properties and Saturna has 33.

Pender Island Sales
114 in 2017
126 in 2016

Saturna Island Sales
18 in 2017
21 in 2016

We anticipate the same balanced market here as in Victoria. With record low inventory and primarily cautious and few qualified cash buyers currently looking here, we are seeing the effects of the new higher stress test for mortgage lending on the numbers of potential buyers.

Important Takeaway: Pricing is now Paramount Under Current Market Conditions for Sellers if They Want to Sell!