Last year, Greater Victoria recorded most real estate sales since 2016
The latest report from the British Columbia Real Estate Association (BCREA) shows that home sales in Greater Victoria in 2021 were just short of record breaking pre-pandemic numbers reached in 2016.
The report indicates that in December 2021 alone, there were 419 residential properties sold. The average price for a single-family home in the region rose 22.7 per cent to an all-time high of just over $1 million.
“In 2021, it was about 9,500 sales for Victoria and I think the record was 10,000 in 2016, so the second-best on record” said BCREA chief economist Brendon Ogmundson.
“A lot of that, though, is due to the severely low supply of listings, and I think if there had been a lot more choice out there, sales would have reached a record in Victoria.”
Ogmundson says the real estate market in B.C. and on Vancouver Island has been been very robust since the summer of 2020. He says despite the continuing pandemic and the most severe economic contractions in Canada since the Great Depression in the 1930s, the real estate market has seen a remarkable recovery.
“A lot of that is driven by record-low mortgage rates and a real desire for space,” said Ogmundson. “A lot of the demand we saw on the Island was people coming from the Lower Mainland trying to get more affordable, more available space.”
He says the demand for real estate in Victoria not only resulted in record-setting prices for single-family homes, but the price of condominiums has also rebounded.
“We started to see condos pick up after they lagged in the market through most of the pandemic,” said Ogmundson. “It’s all just a product of low supply in Victoria.”
Ogmundson says the Greater Victoria real estate market is likely the most severely constrained market in B.C. He says with a population of almost 400,000 people, there were only 400 available listings in Greater Victoria in December 2021.
“When you have a market with no supply and strong demand you’re going to get high prices,” said Ogmundson. “A market like Victoria was already under-supplied in 2019, then people withdrew their listings at the beginning of the pandemic, (and) we had this unexpected recovery and that drew down inventory even more.”
Ogmundson says another reason for the low number of listings is the migration of people moving to Greater Victoria from the Vancouver area. He says the influx of buyers from outside the region made an already low supply of homes even lower.
“Markets like the Island got more of the, ‘This was the plan in five years but we’re going to do it now instead,’ and I think the pandemic accelerated a lot of that movement (from the Lower Mainland),” said Ogmundson. “The Island is already challenged getting listings to the market because people usually go there to settle.”
Ogmundson says other reasons for the low inventory of available residential listings may be a reluctance by home owners to sell their homes during the ongoing pandemic or because the choices in a new home are limited.
“Even if you wanted to sell your home to take advantage of these high prices, there’s the issue of where you’re going to go,” said Ogmundson. “People are kind of stuck in place by just a lack of choice, which brings it back again to we need to expand the housing stock and provide more choice.”
Ogmundson says an increase in mortgage rates to pre-pandemic levels will help to dampen the demand, but he expects it may take another two to three years for the number of buyers and the number of available listings to even out.
“It helps supply because you have fewer sales and the total number of listings start to accumulate,” said Ogmundson. “We’re at all-time lows in supply and I think the listings in Victoria would have to quadruple to get back to a healthy level, so this is a long process to build those listings back up.”
CTVNews.ca Top Stories
BREAKING Iran fires at apparent Israeli attack drones near Isfahan air base and nuclear site
An apparent Israeli drone attack on Iran saw troops fire air defences at a major air base and a nuclear site early Friday morning near the central city of Isfahan, an assault coming in retaliation for Tehran's unprecedented drone-and-missile assault on the country.
NEW After hearing thousands of last words, this hospital chaplain has advice for the living
Hospital chaplain J.S. Park opens up about death, grief and hearing thousands of last words, and shares his advice for the living.
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.
Ontario woman loses $15,000 to fake Walmart job scam
A woman who recently moved to Canada from India was searching for a job when she got caught in an online job scam and lost $15,000.
Prince Harry formally confirms he is now a U.S. resident
Prince Harry, the son of King Charles III and fifth in line to the British throne, has formally confirmed he is now a U.S. resident.
Colin Jost names one celebrity who is great at hosting 'Saturday Night Live'
Colin Jost, who co-anchors Saturday Night Live's 'Weekend Update,' revealed who he thinks is one of the best hosts on the show.
Ottawa to force banks to call carbon rebate a carbon rebate in direct deposits
Canadian banks that refuse to identify the carbon rebate by name when doing direct deposits are forcing the government to change the law to make them do it, says Environment Minister Steven Guilbeault.
DEVELOPING G7 warns of new sanctions against Iran as world reacts to apparent Israeli drone attack
Group of Seven foreign ministers warned of new sanctions against Iran on Friday for its drone and missile attack on Israel, and urged both sides to avoid an escalation of the conflict.
Some Canadian families will receive up to $620 per child today
More money will land in the pockets of some Canadian families on Friday for the latest Canada Child Benefit installment.