Greater Victoria real estate sales show steady rise

Highest number of properties sold in September since 1992

By Carla Wilson, Times Colonist October 2, 2009

Chris Markham says upward pressure on prices is returning.

Photograph by: Debra Brash, Times Colonist

Greater Victoria's real estate market flexed its muscles last month by ending with the highest number of September sales in 17 years.

"The last seven months have shown a steady improvement in sales and price stability," Chris Markham, president of the Victoria Real Estate Board said yesterday.

The capital region is not alone. It reflects growing signs of stability in global real estate markets and signals increasing confidence in the economic recovery, said a Scotia Economics report also released yesterday.

At the same time, new home construction in Canada, particularly in the four western provinces, is on an upward trend as well, the report said. "Builders are responding to tight resale market conditions, which tend to spur relative demand for new homes," said Adrienne Warren, senior economist with Scotia Economics.

In Greater Victoria, a spurt in sales over the $1- million mark pushed the average price for a single family house in the capital region to $619,936 in September, up four per cent from $596,498 in August. Last month saw 24 sales of $1 million plus.

"These included five sales of over $2 million, three in Saanich East, one in Victoria, and one on the Gulf Islands, which had a significant impact on the overall average price," Markham said.

This is the first time since January 2008 that the average price for single-family homes topped $600,000. In December 2007, the average was higher at $624,450.

Last month's median -- or midway -- price for single-family houses was $550,000, an increase of $10,000 from August, board figures show. The six-month average price was $581,498.

The average price for condominiums rose as well, moving to $325,106 last month from $317,312 in August. The median in September was $295,000.

Townhomes saw their average price slide to $441,966 in September, from $455,430 in August. The median in September was $415,000.

A total of 776 homes and other properties sold in September through the board's Multiple Listing Services. That's up from 764 in August, and from 512 in September of last year, when the global economic crisis was in full force.

The highest number of September sales, since data was collected in 1990, took place in 1992 when 903 properties changed hands.

May 1991 recorded the highest number of sales for any month, at 1,083, since 1990, the board said.

The value of all property sales in September was $382.4 million. Sales included 437 single-family homes, 197 condominiums, and 79 townhomes.

September's inventory of properties on the market was 3,419, down from 4,754 from the same month a year ago.

"We are now seeing some renewed upward pressure on prices as a result of the declining inventory," Markham said.