WATCH: The price of real estate in the capital region is continuing to increase. But with a change in government, there are concerns that could result in a cooling of the region’s red-hot market. Mary Griffin reports.
Real estate in the capital region is red hot. The only question is how long prices will continue to increase.
The price of a single family detached home on the West Shore $577,000. In Victoria, it’s $809,000. And in Saanich East, $976,000
The average price of a single-family home in Oak Bay is now $1.2 million.
In Victoria’s Fairfield neighbourhood, three houses sold in the past month. The latest was a home was built in 1947 said realtor Scott Piercy.
“This property is going for just over two million. Four bedroom home, on Despard Avenue. Close to beaches. Close to everything,” Piercy said.
Realtor Tony Zarsadias focuses on the condo market. He said the demand currently outstrips supply.
“We are definitely faced with lower supply. Sales are exceeding the supply that are coming onto the market,” Zarsadias said.
Pre-sales for a condo development in Saanich are ahead of expectations by 40 percent.
And realtors don’t expect it to slow down anytime soon.
“Now we are starting to see baby boomers looking for one level living. So we’ve got a new group of buyers, to the condo market. And it’s becoming more competitive,” Zarsadias said.
But there are worries within the industry that it will slow down, with a change from a pro-business Liberal government, to the pro-labour NDP.
UBC’s School of Sauder professor Tom Davidoff says the local market has been insulated by the buyers coming to the island from the rest of Canada.
“I suspect without the Vancouver exodus, from the high prices here. Victoria would have lower prices than today. And with new policies, changes in macro economic environment, uncertainty in China, they just contribute to a great deal of uncertainty,” Davidoff said.
Piercy says he doesn’t expect prices to make any major leaps anytime soon. “It’s good to see a more balanced market. It’s good for everybody. It takes pressure off people looking, and gives people more confidence to make a move if they are looking to make the move,” Piercy said.