While sales are starting to approach last years levels month by month (Victoria Real Estate Board June 2011 – 618, 2010 – 625), inventory has continued to grow, with over 5000 houses, condos, townhomes and other properties available for sale on the VREB MLS®, the highest monthly level in 15 years. This is creating very favourable conditions for buyers, many properties to choose from, a plateau on prices and still very attractive interest rates for financing.

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.”

It may come as a surprise to some people that home heating oil is still a very commonplace heating solution for many Victoria and Vancouver Island homes. Although there are great arguments for the efficiency of natural gas and electric heat, many existing homes are still using oil. Provided you have replaced your oil tank within the last decade or so, and it is in an appropriate location in the property (ie. not downstairs in the basement – that doesn’t fly anymore) then there is usually no issue as far as insuring your property or in heating your new home. Although oil is generally considered to be a more expensive form of heating, it also usually found in older homes where significant savings can be made with things like upgrading the windows, adding insulation and properly weatherstripping doors and attic hatches.

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.