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Mill Bay, Cobble Hill and Shawnigan Lake
Victoria Real Estate Market News
When working with buyers and sellers of real estate in Victoria, Mill Bay, Cobble Hill, and Shawnigan Lake, I always stress the unique nature of the Victoria real estate market. Unlike many Canadian cities there are no price spikes either up or down in Victoria but rather a steady, conservative market where property investments grow. There are times when real estate prices don't move much, and as in any market, timing for selling is important. The Japanese philosophy regarding real estate investment: buy quick and sell slow, could make us all rich in Victoria. Have you ever heard someone lament that they should have bought multiple properties in the past? I was in Las Vegas 2 weeks ago and sat beside a lady from Sacramento who had recently purchased 9 properties in the current downturn. Her rents pay the mortgages and we can all guess what will happen in the long term. Who loses $$$ in real estate investments? It is the buyer who waits for the market to bottom out and the sellers waiting for the market to peak. We only know the bottom and peak after they have been reached and the market is heading in the other direction. Real estate has always been a smart long term investment in Victoria and will continue to be.
The current market for properties in Victoria is an exciting one. With over 3900 homes for sale we have something for everyone. In contrast with past markets, ie 2006, when we had 1900 properties on the market, buyers now can shop to find their ideal properties at great prices. Since June of 2008 prices have fallen between 15-20%. Sellers, whose homes have been on the market for over 45 days can be negotiated with, like never before. Combine this with interest rates below 4% and we have a strong buyers' market for homes in Victoria.
The number of sold properties dropped dramatically between October 2008 and January 2009. February and March showed signs of revival. If the 2 month trend continues it will confirm a return to a traditional strong spring market. This would go a long way towards stabilizing market conditions in Victoria. The various predictions we have heard from CMHC and various economists is for stabilization of the Victoria market later in 2009 or 2010. Empirical evidence would include between 400-500 sales per month and levels of prices and inventory not showing much fluctuation. This could then be called a "normal real estate market".
As mentioned earlier more extreme market fluctuations are experienced in cities where the local economy is dependant on 1 or 2 industries. Victoria's economy has diversified over the last 15 years and will continue this trend in the future.
Once dependant on government jobs and the immigration of retirees, Victoria now boasts a vibrant economy and a jobless rate amongst the lowest in the country. I remarked in my latest newsletter that the largest demographic group in Victoria is now between the ages of 20-55. Many of this group work in our largest employing industry, technology. Other top employers are education, ie 4 universities, tourism, government, and a growing service industry. For those who want to work in the Hawaii of Canada and benefit from our moderate climate, which allows for an unparalleled Canadian lifestyle, Victoria is where you should be.
For updated real estate market news from Victoria, Mill Bay, Cobble Hill and Shawnigan Lake, please check out my newsletter and Victoria Real Estate Board links.
BY EMAIL:baz@garybazuik.com
BY Telephone:(250) 380-2002
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