There were 483 homes and other properties sold in October 2011, up from the 458 sales in September (and bettering October 2010′s result of 467 sales).

Average prices declined in all 3 categories (houses, condominiums, and townhomes) from September to October, although October’s average house price of $595,836 is still higher than July of 2011. While average prices can vary widely from month to month (September saw 14 houses over $1 million sell, skewing the average price to over $622,000), the general trend has been a stabilizing of the market and an overall pricing plateau.

Across the board there is a 44% sell/list ratio, meaning that out of every 100 properties listed, only 44 are selling. As many For Sale By Owners are finding out, the value in working with full-commision trained agents becomes very apparent in market conditions like these.

If you are one of those homeowners that have tried to sell and were unable to fulfill your goals, remember that you are not alone. Many people like you have benefitted from taking the Home Marketing Analysis in order to better prepare their home and themselves before re-entering the market. If you would like to receive your free Marketing Analysis simply email shamusbaier@gmail.com or call 250-858-3025.

Monday, August 29/11

MTD August
2011               2010
Net Unconditional Sales:   469                425
New Listings:                 1,056               956
Active Listings:               4,811            4,356

Please Note

•Left Column: stats so far this month
•Right Column: stats for the entire month from last year

Data provided courtesy of Victoria Real Estate Board

Sales in VREB  are down 21 per cent this year compared to a this point in 2010, but as President Dennis Fimrite explain “It’s important to note, however, that the first few months of last year were very active compared to this year and we are now seeing a return to similar market conditions of a year ago.”

June 2011 Average Price Graph

The Vancouver Island Real Estate Board showed a 1% decrease in sales and a 1% lower average price for single family homes from May to June, but overall holding steady.  Since 2011, prices have actually increased by 1% for single family homes in the Cowichan Valley (up to $352,853)  and VIREB President Jim Stewart remarks ”There have been some encouraging sales in other sectors such as water front and lots.”

The largest concern about oil heating when buying or selling a property is whether or not there is an underground oil storage tank buried on the property. Natural gas wasn’t introduced to Victoria until 1957 and prior to that, many home owners buried their oil storage tanks underground to avoid an unsightly tank taking up valuable space in their yard or home. Unfortunately, this lead to the potential for an environmental nightmare.

A metal tank that’s buried in the ground will simply not last forever. It will rust and degrade until it is no longer sealed and leaks can develop. You can imagine the effect of 1000L of heating oil slowly leaking into your backyard. Now most buried oil tanks were not left in the ground full to the brim, as they neared the end of their life, homeowners replaced the tanks with new ones either inside or outside the house., but many left the old tanks right where they were. As time goes by, water can leak into the tank and that oily residue can pose an environmental risk.

As a home buyer, if you are looking at a home that pre-dates the 1960′s you will want to have the property inspected for a buried oil tank. If the tank has already been removed, there should be a record of it, but it’s a free inspection and could save you tens of thousands of dollars. The standard practice is if you discover an underground oil storage tank druing your inspection of the property, get an amendment to the contract that states the Seller will remove the tank and remediate the property at expense to the Seller.

This should come as no surprise however, since sales activity typically builds after the holiday season and many people  wait for the spring to put their homes on the market. There were 622 sales recorded on the VREB Multiple Listing Service® for March 2011, a definite increase from February’s 422 sales, but yet still below sales activities of March 2010 (789 sales). There is a general consensus that last years early sales figures were boosted with the confusion surrounding the introduction of the HST as many people pushed their purchases forward in the year.

Inventory levels are also reflective of that trend, with 4100 properties available at the end of March 2011, 10% more than on the Victoria MLS® at the same time last year.

See the current relationship between Active Listings and Sales

Although many people have been waiting for the ball to drop, average prices have begun to increase again, with last month’s single family home averaging $619,275 for Greater Victoria, an increase of almost $9000. Condominums also had a moderate average price increase to $325,581, up slightly from February’s $323,844. Townhomes have been holding their value quite steadily, although we did see another average price increase from Feb to March ($434,626 from $415,591) although the 6-month average declined slightly to $431,975.

See the Average Price Graphs for Greater Victoria

It has been a turbulent few years in the real estate market, with the sub-prime mortgage meltdown in the US, international economies faltering, and some banks receiving whopping bail-out packages, but things in Victoria’s real estate market are settling down and we are holding our own in Balanced Market. There are a reasonable number of both Buyers and Sellers entering the marketplace and people are moving for ass the “normal” reasons: a new job, additions to the family, adult children moving out etc.

The first-time buyers are still an important contributor to driving the Victoria real estate market, and although there has been some upward activity as far as mortgage rates, interest rates are still very attractive and many renters are still able make the jump into home-ownership.

March 2011 Sales by Area/Type