WATCH: Housing prices were up in Victoria in March compared to March 2017, but are lower prices on the horizon? April Lawrence takes a look.
After years of record-breaking sales, the number of condos and homes sold in Greater Victoria in March 2018 dropped about 30 per cent from the year before, yet prices continue to climb.
The average price of a condo in Greater Victoria topped $476,568 last month, about $70,000 more than the year before. Single-family home prices rose too, reaching an average of $903,052.
Realtors say new mortgage rules and new provincial measures to tackle housing affordability may be starting to slow sales.
“With the uncertainty of the provincial measures in place, maybe a lack of consumer confidence in the province right now where the economy is going to go,” said Victoria Real Estate Board President Kyle Kerr.
But is there a chance prices will follow suit? In Toronto, the number of sales didn’t just drop in March, but prices saw their biggest slide in almost 30 years.
Kerr says he’s doubtful Victoria will see any decline, largely due to the lack of housing supply.
“When there’s only a limited amount of stuff to choose from, it’s hard for prices to come down,” said Kerr.
While cranes and construction crews seem to be everywhere, realtors say it still isn’t enough.
“Most of those are pretty close to sold out so we don’t really have as much supply as people think, we, in fact, have a massive supply problem,” said Condo Group Owner Tony Zarsadias.
Developers like Margie Shenbuk are trying to meet that demand ? she’s proposing a 45-unit condo above Sidney’s famed Star Cinema, that will include an entire floor of three-bedroom units for families.
“There’s a lot of people I meet all the time who grew up in Sidney and want to come home but there’s nowhere for them to go,” said Shenbuk, Director of Operations for Casman Group.
Unless there’s some major government-level change to increase supply, experts say prices here may flatten out, but there’s little chance for a decrease in the near future.
April Lawrence
