The average residential price in Greater Victoria was $612,584 in the opening quarter of this year — a 12 per cent increase from the same period a year ago — and limited inventory is expected to drive prices even higher, says a new report.
The Re/Max Spring Market Trends Report said inventory levels are so low in the region, potential buyers are choosing to leave the real estate market, citing a 14 per cent drop in sales during the January-to-March period this year compared with last — from 2,432 sales to 2,082.
“New condo projects nearing completion will help increase inventory levels and are expected to lead to increased sales activity toward the end of the year and into 2018,” Re/Max said.
Condominiums and luxury homes are the most sought-after properties in Greater Victoria, the report added, with listings for both typically receiving multiple offers. According to Re/Max, the year-over-year average condo price in the region is up 18 per cent, from $333,961 to $393,545, with young couples and retirees driving the demand.
Typical prices for so-called luxury homes range between
$1 million and $2.5 million. The report notes “move-up” buyers are driving that demand with ocean-front properties in Oak Bay the most coveted buys.
Re/Max said while demand from Vancouver buyers has cooled as a result of the foreign-buyer tax, in-migration from Alberta continues to fuel demand in Greater Victoria.
Re/Max said first-time buyers face an escalating price range of between $400,000 and $500,000, leaving condominiums the main option for entering the market.
