Housing prices in Greater Victoria continue to rise, making Victoria one of the least affordable cities in Canada, according to one new report.
One Oak Bay home is selling for more than $1.9 million, but that’s no deterrent for buyers in Greater Victoria despite the sticker shock according to realtor Nancy Stratton.
Houses priced right continue to sell for above asking for now, but Stratton said the market is slowly changing.
“We’re actually seeing a bit more of a balanced stabilized market. We still have our buyers,” Stratton said. “We’re getting more and more listings on the market. We’ve actually caught up with the same amount of listings as last year at this time.”
A single family home in Greater Victoria sells for an average of $1.4 million dollars, up 20 per cent since May 2021, according to the Victoria Real Estate Board.
And condos are up 22 per cent selling on average for more than $655,518.
But there is more to look at with listings up 30 per cent from April 2022.
That moderate slice of optimism is countered by another 0.5 per cent increase in the Bank of Canada’s benchmark interest rate.
Mortgage broker Samantha Brookes said rising rates will take a toll.
“These low rates are now gone. They’re totally off the table,” Brookes said. “And people just have to be more aware of how much this is going to increase their cost per month.”
Buyers in Greater Victoria now have to deal with the distinction of living, and buying, in the country’s least affordable city, according to a new report from the National Bank of Canada.
In order to purchase that $1.4 million home, buyers need an annual income of more than $200,000.
And to put down that 20 per cent down payment would take 382 months, or 32 years.
Kyle Dahms is an economist with the National Bank of Canada, and said the situation won’t improve soon.
“The conditions may get worse before they get better in the sense we may see that further deterioration in housing affordability due to higher rates without seeing any decline or moderation in home prices,” Dahms said.
While the local real estate market is not expected to drastically change, Stratton said it is giving everyone a bit more of a chance to breathe, before buying.
“It’s nice to be able to see a little bit more, and have time for due diligence, and have time to make a decision, and know what you are buying.”
Mary Griffin
