Higher prices, more competition: Victoria's housing market hits inventory gridlock
January home sales throughout the Capital Region dropped in excess of 11% compared to last year as Victoria homebuyers struggled with record-breaking inventory lows that worked to drive up housing values and suppress sales.
“There is gridlock in the marketplace,” says Marko Juras, a REALTOR® with Victoria’s Fair Realty.
“We’ve got a situation right now where the low inventory environment, coupled with high demand for housing, is forcing potential home sellers to remain in place out of fear that once they sell, they won’t have anything to buy.”
A total of 478 properties changed hands throughout January, a drop from 539 one year ago. But the more important figure is the available inventory, now sitting at record-breaking low of 1,516. Twelve months ago there were 2,471 listings on the market, a 25-per-cent drop from January 2015’s 3,283, which was also a sizeable decline from 2014.
Meanwhile Victoria housing values for 2016 saw the highest average on-record with single-family-homes priced at $755,000.
The situation, Juras says, is unlikely to change unless external forces affect the market.
“It all comes down to inventory at this point. Unless we see a major spike in listings as we move into the spring, or if buyers simply stop buying due to greater market forces and available inventory piles up, we’re in for more of the same in 2017 where prices are likely to rise with homebuyers struggling with a lack of choice and high competition for desirable properties.” C