Bargain-seekers gravitating toward Victoria's residential market

Bargain-seekers gravitating toward Victoria's residential market

Bargain-seekers gravitating toward Victoria

Sales activity in Victoria’s lower- and mid-end housing segments continues to accelerate, in turn impelling price growth in the market’s condos and single-family assets.

“It is a challenging time for those shopping for properties in that price range as they can often find themselves in a competing offer situation,” Victoria Real Estate Board president Cheryl Woolley said.

The benchmark value of a condo unit in Victoria saw a 3.1% annual gain in November, ending up at $517,000. Meanwhile, the average price of a single-family home in the region fell by 1.2% to $855,400.

The region saw a 15.9% annual increase in home sales last month, according to the Board’s latest data release. Condos had a 5.9% year-over-year growth in transactions, while single-detached housing surged upward with 15.4% more sales compared to November 2018.

The condo figures mirrored the results of a survey by Royal LePage, which found that condos are fast becoming the residential asset of choice in Victoria.

“Newly constructed developments are driving strength in Victoria’s condo sector. Units in these new builds are being sold quickly,” Royal LePage Coast Capital Realty sales representative Neil Bosdet said earlier this year.

“We are seeing millennial and first-time home buyers attracted to condos for their relative affordability. Younger generations are also willing to sacrifice space for a more desirable downtown location.”

As of the end of November, Victoria’s inventory stood at 2,397 active listings for sale, representing a 2.4% annual increase and a 9.3% drop from October 2019 levels.