The Victoria housing market is still considered vulnerable, according to the latest CMHC assessment. (Black Press files)

Victoria’s housing market remains vulnerable

Houses on sale for longer, sell for lower

Upon hearing the latest housing market assessment from the Canada Mortgage and Housing Corporation, real estate agent Patrick Schörle said it reflected what he saw on the ground.

According to the report, Victoria’s housing market continued to show signs of overvaluation. Despite rising wages and a young population (which is correlated with household formation), rising interest rates have increased the carrying costs for home ownership. They believe homes are overvalued for the fundamentals. Single-detached sales declined from 60 to 50 per cent of total sales, while apartment sales increased from 30 to 40 per cent of total sales, so “in other words, demand in the market shifted to units with relatively greater affordability.” Homes are now on the market for longer, and fewer homes were sold above asking price.

Schörle, of Pacifica Real Estate in Sidney, said he does not expect the market to decline, instead saying it is softening. Sellers can no longer be as aggressive on upscale pricing, he said. There were some signs of a slowdown, he added, but it would become clearer by the end of January. It was more likely that the market would flatline, he said.

RELATED: Overvaluation for Victoria housing market in summer 2018

He saw tremendous growth in the market in 2016, and if home values declined dramatically, recent homebuyers committed to mortgages “would be put under water,” said Schörle.

He said there were sufficient options on the high-end, which he defined as anything above $800,000. For the mid-to-low-end, particularly single family homes, Schörle said anything under $600,000 is “definitely a feat, unless you go to the outskirts of the region.” He said there is definite undersupply in that bracket, partly because high land values made mid-priced homes difficult to find. He said land values were “the crux” of solving the affordability issue, and that government help is likely the only way those options would open up. He was particularly keen on action from the provincial and federal government.

“It is not something we can just achieve in Sidney, or Central Saanich, this needs to happen on a much larger scale.”


Like us on Facebook and follow us on Twitter

reporter@peninsulanewsreview.com

Just Posted

Vaping a growing problem in Sooke school district

Island’s chief medical officer raises the alarm

Island Health issues safer drug-use tips ahead of music festival season

Health authority aims to reduce overdose risks at festivals

Fate of accused in Saanich couple’s 1987 killings in jury’s hands

William Talbott’s lawyer says DNA doesn’t prove murder

Victoria woman accesses healing Burn Fund resources 45 years after injury

Stasi Manser was burned when she was five years old and now works as an adult burn survivor advocate

Brentwood Bay fruit stand plundered on first day of season

Leeanne and Jack Guthrie dismayed to find money and fruit stolen from roadside stand

VIDEO: Killer whale steals fisherman’s catch off North Coast

Fishing duel results in eager orca snagging salmon in Prince Rupert

PHOTOS: North Island home gutted in fire deemed ‘suspicious’

No injuries reported; firefighters prevented blaze from spreading

Child killed after being hit in driveway on Vancouver Island

The driver of the vehicle remained at the crash scene and is fully cooperating

Eating sandwiches, putting on makeup behind the wheel could land you a fine

RCMP say if you cause an accident while eating you could be penalized

Cat badly hurt in animal trap was likely stuck for days, B.C. owner says

Blu, a three-year-old house cat, suffered severe damage to his hind leg after being stuck in trap for days

Vancouver Island woman assaulted after confronting thief

RCMP warn residents to call for police assistance

POLL: Do you think the penalty should be increased for tossing a burning cigarette from a vehicle?

With grasslands and forests around Vancouver Island and across B.C. reaching tinder… Continue reading

40 cats surrendered in apparent hoarding at B.C. home

Officers found the cats living among piles of garbage and feces, suffering from fleas

Campers hailed heroes in rock face rescue at Vancouver Island provincial park

The campers quickly noticed the man in distress and jumped into the river to swim across.

Most Read