Thursday, February 4, 2010
Saturday, November 14, 2009
Greater Victoria real estate on a big rebound
Greater Victoria real estate is seeing a boom of sorts.
Photograph by: Files, Times Colonist
Victoria, B.C. - Greater Victoria real estate is on a big rebound with residential sales expected to increase by 21 per cent this year and another five per cent in 2010.
A forecast Friday by the B.C. Real Estate Association said Greater Victoria sales will hit 7,450 by the end of the year and 7,800 in 2010 — increases driven by overall confidence in the economy, pent-up demand and low borrowing costs. The forecast added average price on the Multiple Listing Service will dip two per cent to $475,000 this year, but increase by six per cent in 2010.
“I don’t think many of us thought last January, as the financial crisis was unfolding, we’d be looking at near-record activity in the market come fall,” Cameron Muir, the association’s chief economist, said in an interview. “The demand for real estate just welled up and the fact that interest rates have stayed very low has helped to build a strong demand. Victoria and Vancouver, in particular, are posting near record unit sales this fall.”
Muir said despite the rollercoaster economy, British Columbia still has 92 per cent of its labour force working. “People feel secure and see home ownership as viable,” he said, noting bidding wars on well-priced, good-location properties are common again.
The Vancouver Island Real Estate Board, covering all areas north of the Malahat, will also see increases in sales — six per cent this year to 7,200 and a 10 per cent leap in 2010 to 7,900 transactions — exceeding Greater Victoria’s total. Prices will slip by four cent this year to $330,556 and, in 2010, the average will tick up one per cent to $320,500.
Muir says a 20-per-cent sales surge across British Columbia will mean 82,900 homes will be sold this year, up from just 68,923 units sold the year before. Sales are expected to climb to 89,600 units next year.
The average annual MLS residential price in the province is expected to post a new record this year, rising two per cent to $463,200 and is forecast to climb an additional four per cent to $482,800 in 2010.
“Recovery in the B.C. economy will unfold gradually next year,” Muir said. “With sales prices in some markets flirting with record highs, affordability constraints will limit home price inflation over the next year.”
Friday, October 2, 2009
Greater Victoria real estate sales show steady rise
Highest number of properties sold in September since 1992
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.
Tuesday, August 25, 2009
August 19, 2009
Inflation: Lowest in 56 Years at –0.9%
On the other hand, core inflation (the Bank of Canada’s key metric), is fairly buoyant at 1.8%. That’s just shy of the BoC’s 2% target.
Bond yields fell on the news. The 5-year GOC yield is down to 2.49% at last look--a four week low. For trader-types, key support is around 2.40%.
Yields have slowly drifted lower for the last week and a half. That may push some non-bank lenders closer to 4% again on 5-year fixed mortgages.
Tuesday, August 4, 2009
Victoria's July housing sales highest in almost two decades
Greater Victoria's housing sales jumped in July
Photograph by: Staff , Times Colonist
Greater Victoria’s housing market remained strong in July, hitting the highest number of sales for that month since 1990.
A total of 933 homes and other properties sold through the Victoria Real Estate Board’s multiple listing service last month, up 51 per cent compared with July 2008 when 616 properties changed hands.
At the peak of the market in 2007, a total of 922 properties were sold. The board’s monthly sales tables date to 1990.
Greater Victoria’s real estate market slowed dramatically late last year and early this year. It picked up in the past few months as the market became more balanced and interest rates remained low.
July’s sales totals came in slightly below June, when 946 sales took place, the board said today.
The average price for a single-family home moved down slightly to $565,469 in July, from $588,186 in June. The median price was $520,000.
Saanich East led the way among single-family home sales, with 92 changing hands in July, followed by Langford at 59, Saanich West at 50, and Sooke at 49.
A total of 516 single-family homes sold through the board in July and of those, 471 were within Greater Victoria.
Last month’s average price for a Greater Victoria condominium climbed to $328,441, an increase from $298,200 in June. The median was $290,000. Victoria saw the highest number of condo sales at 103 (plus a further 15 in Vic West), followed by Saanich East at 41.
Townhomes earned an average price of $443,109 last month, up from $413,218 in June. The median was $421,000.
Chris Markham, board president, said sales point to rising consumer confidence.
“There are indications that the recession is nearing an end and people are feeling more confident in the economy and consequently more confident about making a move up or down in the housing market, depending on their needs.”
Overall sales so far in 2009 are about two per cent higher than the same months last year, he said.
“The year began very slowly but the rebound in the past four months has been significant.”
The total inventory declined in July to 3,632, reflecting a decrease of 20 per cent from 4,557 in July 2008.
“The decline in the number of properties available for sale means we can expect some upward pressure on prices, though it is important to note there will always be month-to-month fluctuations in prices depending on the properties sold,” Markham said.
Thursday, July 2, 2009
Victoria real estate market hot again; sales numbers near record levels
Victoria's real estate market is heating up again, proving the appeal of the region.
Photograph by: File, Times Colonist
Victoria’s real estate market is officially hot again now that June sales numbers hit their third highest monthly level in recent years and single-family prices continue climbing.
The total of number of sales in June was 946, trailing only 2007 when May had 963 sales and June had 949. The previous high was set in May 1991, with 1,083 sales, the Victoria Real Estate Board said Thursday.
Of the 946 properties, the vast majority were residential but numbers also include 12 commercial properties, all sold through the board’s Multiple Listing Service.
Last month’s sales reflect a whopping 31 per cent increase from 723 in June 2008, and were up by seven per cent from May 2009 when 879 properties changed hands.
“For the past couple of months, we have seen growing strength in the market as many people who were waiting to see which direction the market would move in have decided now is the time to buy,” Chris Markham, Victoria Real Estate Board president, said Thursday.
This rebound is stronger than anticipated, he said.
June sales included 539 single-family houses, 242 condos, and 104 townhomes. The total value of all sales was $447.6 million, the board said.
The average price of a single-family house sold through the board’s Multiple Listing Service increased to $588,186 last month, up from $573,442 in May. The median in June was $529,900.
Saanich East led the region in the number of total single-family sales, at 94, followed by Langford at 60, and Victoria at 42.
There was a slight decrease in the average price for condominiums, at $298,200 in June. May’s average was $306,971. The median in June was $275,000.
Victoria had the highest number of condo sales, at 99, followed by Langford at 40.
Townhomes saw an average price increase, rising to $413,218 in June, up from $400,788 in May. The median remained the same month-over-month at $375,000.
After a dramatic drop in sales when the economic downturn kicked in last year, the market began recovering this year, starting with the housing in lower end of pricing. The real estate sector has seen sales increase along the pricing ladder as the market regains its strength.
Last month brought 26 sales of more than $1 million, including one Uplands home at more than $5 million, the board said.
Inventory has tightened up since June of last year, helping drive demand. Last month, there were 3,794 properties for sale, a decrease of 16 per cent from the 4,513 on the market in June 2008.
“The drop in available inventory is also reflected in the price increases for single family homes and townhomes that we saw last month,” Markham said.
cjwilson@tc.canwest.com
Tuesday, June 9, 2009
June 8, 2009
Bond Yields Jump Again
The 5-year government bond rocketed to 2.71% today. Various lenders have already issued fresh new fixed rate increases. More may follow tomorrow if yields don’t retrace.
Two-year bond yields also broke to the upside. That may lead to upcoming rate increases on shorter-term mortgages, which have been insulated from rate hikes for several months.
If you’re shopping for a fixed mortgage, be safe and get your application in soon.
