A Balanced Market Means Opportunity for Buyers and Sellers in Victoria. Two Year Extension on Foreign Buyer Ban. 85 Offers On One Home… AGAIN !? Interest Rate Decrease & More.

A balanced market means opportunity for buyers and sellers in Victoria

A total of 341 properties sold in the Victoria Real Estate Board region this January, 22.7 per cent more than the 278 properties sold in January 2023 and a 3.6 per cent increase from December 2023. Sales of condominiums were up 10.9 per cent from January 2023 with 112 units sold. Sales of single family homes increased 35 per cent from January 2023 with 162 sold.

“Our housing market eased into the new year with a renewed sense of balance,” said 2024 Victoria Real Estate Board Chair Laurie Lidstone. “Sales were up slightly based off last year’s very low numbers, and overall, we saw the stabilization that we observed in late 2023 continue into 2024. Mortgage rates have levelled out, inventory is slowly creeping back up, and we are no longer in that highly pressurized market of recent years which created complicated and sometimes stressful conditions for buyers and sellers.”

There were 2,140 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of January 2024, an increase of 0.4 per cent compared to the previous month of December and a 23.1 per cent increase from the 1,739 active listings for sale at the end of January 2023.

“I think this balance and stability in our market brings with it an optimistic outlook for the coming months,” adds Chair Lidstone. “If balanced conditions continue, buyers and sellers will have more time to make decisions and there will be less pressure on pricing. Of course, there are many factors that impact the market here in Victoria, and as we’ve seen in the past things can change very rapidly. If you are considering selling or buying, connect with a local Realtor to identify where your opportunities are as we move towards spring.”

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in January 2023 was $1,224,000. The benchmark value for the same home in January 2024 increased by 1.6 per cent to $1,244,000 down from December’s value of $1,268,000. The MLS® HPI benchmark value for a condominium in the Victoria Core area in January 2023 was $562,200 while the benchmark value for the same condominium in January 2024 decreased by 0.6 per cent to $559,000, down from the December value of $562,000.

Review the January 2024 statistics package here. 

On Sunday, February 4, 2024, Finance Minister and Deputy Prime Minister Chryistia Freeland announced a two-year extension of the ban preventing foreign buyers from acquiring Canadian real estate. As the current ban was set to expire on January 1, 2025, it will now be extended until January 1, 2027.

The measure prohibits non-citizens, non-permanent residents and foreign-controlled corporations from buying Canadian real estate as an investment. The government's rationale is that it is a tool to limit speculation, ensure preferential treatment for Canadian buyers and, ultimately, a way to lower prices by reducing demand.

Mortgage Professionals of Canada (MPC) has argued that such measure is not a solution to the current housing crisis. Despite the fact that the ban has not eased housing prices over the past year, the Minister decided to extend the measure for political reasons.

In addition to our ongoing federal advocacy, our policy recommendations on this issue continue to emphasize the supply side. We are looking to the federal and provincial governments to encourage the construction of more units, access to better credit for Canadians, and simplification of the home buying process. We continue to champion the dream of home ownership for all Canadians. 

While the announcement is disappointing, MPC will continue to advocate for a freer housing market, fewer restrictions on transactions, and policies that truly improve access to homeownership.

The complete version of the announcement can be found here: 
https://www.canada.ca/en/department-finance/news/2024/02/government-announces-two-year-extension-to-ban-on-foreign-ownership-of-canadian-housing.html

CP24 - Mississauga house sells for just under $1M after 85 offers

Federal government extends foreign buyer ban until 2027 (Canadian Mortgage Trends)

Fixed mortgage rates in Canada resume decline amid economic volatility (Canadian Mortgage Trends)

CBC News - Ottawa says it will have news soon on the future of the Greener Homes grant

Bloomberg – Homebuyers in Canada are so frenzied that they won’t wait for rates to go down

Financial Post – Housing prices rose the most in these 5 spots in Canada in 2023

Toronto Star – Buyers at the gate: House prices are expected to rise this year. Will buyers flood in when the rate cuts come?

Storeys – ‘Buyers aren’t rushing’: Luxury home sales slip in Toronto, Montreal, surge in Vancouver, Calgary

Canadian Mortgage Professional – How concerned is the Bank of Canada about the mortgage market?

Mortgage rates drop for the second time in 2024 (Yahoo!Finance)

Is it time to refinance your mortgage? 5 ways to prepare. (Yahoo!Finance)

Canada is building a lot of housing. It’s still not enough (The Globe and Mail)

Market participants still expect the first Bank of Canada rate cut in April (Canadian Market Trends)

Rent prices rose in 2023 as Canada saw lowest vacancy rate since 1988: CMHC (Canadian Mortgage Trends)

Borrowed money led to a boom in pre-construction sales. It could become a problem (CTV News)

Canadian home builders call for policy reforms amid rising interest rates and construction costs: CHBA (Real Estate Magazine)

Financial freedom for Canadians 55+: HomeEquity Bank boosts CHIP Reverse Mortgage support for the broker channel (Canadian Mortgage Trends)

Property taxes in major Canadian markets: Changes over the past decade and where they’re at now (Real Estate Magazine)

Canada to offer universities, colleges low-cost loans to build new student housing (CTV News)

Mike ’Holmes Approved Homes’ demolished due to alleged defects (RCI Canadian News)

The Housing and Mortgage Market Review: January 2024

Victoria Times Colonist - Parking on stretch of Shelbourne could be sacrificed for bike lanes

Victoria Times Colonist - Do you need to remove your underground oil tank? It depends on where you live - “The District of Saanich is the only municipality in the region that requires inactive underground tanks — or those that have been out of service for more than two years — to be removed.”

Victoria Times Colonist - Saanich buys Lochside Drive property for parks department

Victoria Times Colonist - Son searches for underground oil tanks in trenches his father once dug

Victoria Times Colonist - Work at Roundhouse project could start this year and include more rental buildings