Things just keep getting better and better for property sellers in this market!
Many areas of Victoria are enjoying a strong seller’s market, with buyers snapping up properties almost as fast as they are listed. While the whole area is seeing increased sales, certain areas are more affected than others. Properties near UVic, Oak Bay, and Fairfield especially.
Why is this happening?
A combination of low interest rates, low inventory, and an influx of out of province and out of country buyers has created a perfect storm in the Victoria real estate market. Although buyers are having a difficult time finding the perfect property, sellers can benefit now by taking advantage of the rising tide floating all the real estate boats. Even properties traditionally difficult to sell (such as properties on busy streets or requiring updates) are likely to sell faster and for more money than in the past.
Not all homes are created equal.
Now, this isn’t to suggest that simply placing an extravagant price on your “For Sale” sign will result in a quick sale. Every home is unique and it’s important to take into account how it fits within the big picture. Market strategically, listen carefully to your REALTOR’s advice, and remember, a seller’s market isn’t a license to print money, it simply provides a better opportunity to sell and negotiate the most favourable terms.
The above graph represents the “Sales to Active Listings Ratio”. This chart tracks the ratio of total residential sales over total active residential listings at each month-end for Victoria Real Estate Board Multiple Listing Service®.
The active listing count and the sales count can be viewed as indicators of housing supply and demand respectively. Observing the ratio between them can thus help indicate a “buyers’ market” (where there is sustained downward pressure on prices) and a “sellers’ market” (where there is sustained upward pressure on prices).
Based on a regression analysis performed by the Economics Department of the BC Real Estate Association in each market area of the province, ratio for Victoria can be interpreted as follows:
– below 14%, there is downward pressure on prices (buyers’ market)
– above 20%, there is upward pressure on prices (sellers’ market)
– in the 14-20% range, there is little pressure on prices either way (balanced market)
Thinking of selling? Want to know more? You have options:
-Call me at 250-360-6106 or email me at email@example.com
-Sign up for a market snapshot to discover the value of homes in your area here
-Have me over for a free personalized home evaluation