Victoria Is Proving To Be the Most Resilent Real Estate in BC
Victoria is proving to be the most resilient housing market
during the current downturn in the provincial economy.
With a relatively large proportion of workers on government
payrolls, concern for job security is less widespread. In
addition, a sizable number of major projects underway in the
region are helping to offset weaker activity in the tourism
sector. While the global economic recession will continue to
negatively impact the province through 2009, Victoria is
expected to fair relatively better than other BC major centres.
A sharp downturn in home sales was experienced last year,
declining 27 per cent over 2007. While recent data suggests
improvement in consumer demand, the low level of sales
recorded at the beginning
of the year will
pull the annual total
lower again in 2009.
MLS® residential
sales through Victoria
Real Estate Board are
forecast to decline a
further 5 per cent to
5,850 units this year.
However, housing
demand is now well above the trough recorded during the
winter months and home sales are expected to remain higher
for the balance of this year and through 2010. MLS® residential
sales are forecast to increase 6 per cent to 6,200 units
next year.
A marked improvement in housing market conditions over
the last three months has shifted Victoria from a buyer’s
market to a balanced market. The combination of fewer
homes for sale and increased consumer demand is putting
little, if any, downward pressure on home prices. Lower
home prices and record low mortgage interest rates have
contributed to a sizable increase in affordability. At the beginning
of April, the carrying cost of the average priced
home in Victoria was 25 per cent less than the previous year.
This is drawing first-time buyers back into the market and
enabled move-up buyers to sell their current homes. A significant
pull-back in housing starts this year is limiting
growth in the housing stock and setting the stage for a much
healthier market in the months to come.
Source VREB