The world of Real Estate has seen some major changes over the last decade as more and more consumers are using the internet to become better informed about the world around them. If a person is thinking of buying a home in Victoria, they can read the Real Estate Section of the Times Colonist, they can visit their local RE/MAX office and see listings posted, they can drive around the neighbourhood they are interested and look for “For Sale” signs; but most people begin their search on the internet, either by having hot new listings sent to them by their Agent, or by searching http://www.realtor.ca
This means that buyers are better informed about local market conditions than ever before, making it more important for seller’s to price their homes realistically if they want to be noticed in the above-average inventory levels we are experiencing today. We are seeing a 97% Sale Price to List Price ratio across the real estate board, meaning buyers are willing to pay when the price is right, but only about half of what is listed is selling. If you want your home to be noticed it has to be priced right.
Curious what average selling prices have been?
There were 527 sales through the Victoria Real Estate Board last month, down slightly from the 625 sales in June. Although higher this year than July 2009, inventory levels are beginning to decline with only 4477 properties for sale at the close of the month, compared to the 4730 properties available at the end of June. It’s widely believed that this is the beginning of a return to a balanced market, as those sellers who were “testing the waters” with unrealistic prices become discouraged and leave the market.
Overall, there is still excellent selection for buyers out there, and with the global economic situation still unbalanced, interest rates have remained very attractive. As buyers shop around and compare properties, the average days on market for a home to sell is beginning to lengthen, but it is an exciting time for Victoria’s market, and if your home is marketed appropriately, you can still get a fair price in a reasonable period of time.
Curious what average selling prices have been?
Sales may have slowed down a little when compared to the pent-up demand of last year following the price drop in the wake of the recession, but prices are still holding firm across the Victoria Real Estate Board.
There were 625 sales over the month of June, which is down from the near-record 946 sales in June 2009. Although this is also down a little from the May 2010 numbers, there is still plenty of activity on the Victoria market and a large inventory for buyers to choose from.
The big story has been the growing inventory as new listings continue to outpace sales. with a total of 4730 properties availble for sale at the end of June.
See the number of Active Listings and Total Sales
With the high inventory levels, many sellers are becoming frustrated with the length of time it takes to sell, especially if they were expecting to see multiple offers on the first day on market like we saw so often in the spring. Today’s market is very price sensitive, and those sellers that are unrealistic on their pricing will have a hard time generating any interest. There is a 42% sell/list ratio across the Victoria board, and with more than half of all people not being able to reach their goals, expect many to become discouraged and not relist their homes. When the johnny-come-lately’s realize that they are not going to quickly pawn off their house for a huge profit, many of these over-priced listings will disappear from the market and we should return to balanced market conditions.
The high inventory level has kept prices relatively stable and it seems we have reached a plateau. Historically, Victoria’s market goes through a 5-7 year alternating cycle of price increases followed by plateaus while the consumers’ purchasing power catches up. We’ve had our growth period and it looks like the plateau is here. Victoria will always remain one of Canada’s most desirable places to live, and as the baby boomer generation nears retirement age, the migration westward should keep our market fairly active compared to many other Canadian centers.
