WATCH: Greater Victoria’s real estate market is as heated as ever. Calvin To reports.
According to the Victoria Real Estate Board, 36 per cent of single family homes are now listed for more than $1 million.
Some areas are more heated than others.
In the core area, 55 per cent of single family homes are listed above $1 million.
Fifty=seven per cent are higher than $1 million on the Peninsula, and 32 per cent fall under that category in the West Shore.
Experts say prices have been pushed upwards by a lack of supply along with low interest rates and a low Canadian dollar.
A shortage of inventory is also contributing to high housing prices.
Realtor Brad Neufeld says people are willing to pay top dollar for different reasons.
In the city, houses are valued high often because of proximity to amenities, community and access to water.
A rentable in-law suite adds value as well.
In rural areas, buyers look for lots of space, a quiet atmosphere and privacy.
With the right combination of features, the competition for a home can often be intense.
“Now it’s almost to the situation that as long as the house looks good and seems reasonably priced for the area, it sells,” Neufeld says.
But some say the current seller’s market may not last for long.
“Gradually, as demand wanes a little bit and supply meets up with the demand, then we’re going to see a more balanced market based on that,” says Victoria Real Estate Board President Ara Balabanian.