Prices expected to increase in Greater Victoria in 2015
Real estate in Victoria is nothing like the overheated Vancouver market where single family homes sell for millions of dollars.
But the predictions are that prices in Greater Victoria will continue to increase, due to a surprising segment of buyers fueling the market.
Seventy potential buyers walked through this Fairfield triplex during a recent open house.
Realtor Tony Joe says there were three offers.
It sold to a Toronto buyer for $ 1,174,000, who beat out two buyers from Vancouver.
“We had a lot of activity from people who literally drove over just to have a look at that house.
And they were purchasing it for investment purposes.”
According to the Victoria Real Estate Board, low inventory is pushing up prices.
Realtors Ron Neal agrees it’s on the upswing, with a surprising trend.
“Something that’s really emerged in the last year or so is the increase in the people coming from the Lower Mainland, cashing out because their prices have gone up so much more rapidly.”
“For them, the appeal is they are getting the type of house and quality of house that they would get, for instance, in Kitsilano in Vancouver.
Except they are not paying Kitsilano dollars.”
With Vancouver’s real estate market one of the most expensive in the world, residents there are selling their homes and moving to the island as new millionaires.
“They’ve sold their three million dollar house now and buy a million dollar one here that’s better.”
But not everyone wants a house.
Downsizing and moving into a condo downtown is fueling demand.
It’s not as hot a market as the market for single family homes, but it’s still on the upswing.
“The prices, there is only one way, you know, upward.”
A continuing, and growing, trend in Victoria is the international buyers from Asia.
Key areas of interest include James Bay, south Oak Bay, Gordon Head and Cordova Bay.
The projection for 2015 is that low inventory will drive prices up by as much as ten percent this year.