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

Sooke’s Old-Fashioned Country Picnic set for Saturday

The free event combines music, kids activities, food and fun

Take your opportunity to sing at the Royal Theatre

Great Canadian Sing debuts Sept. 8 with inspirational music, talented performers, singalong format

PHOTOS: Inside the opening of the expanded Westhills Stadium

The grand opening of the expanded stadium in Langford is on schedule for Aug. 24

Victoria’s Other Secret not so secret anymore

How six Mount Doug teachers turned a lunch jam into $11,000 raised for charity

Award-nominated Snotty Nose Rez Kids headline Indigifest 2019 coming to Victoria

Scheduled for Aug. 24, the event is a showcase of Indigenous musicians from around B.C.

70 years of lifting: Canadian man, 85, could cinch weightlifting championship

The senior gym junkie is on track to win the World Masters Weightlifting championship

Sooke’s Old-Fashioned Country Picnic set for Saturday

The free event combines music, kids activities, food and fun

Advocates ‘internationalize’ the fight to free Raif Badawi from Saudi prison

Raif Badawi was arrested on June 17, 2012, and was later sentenced to 1,000 lashes and 10 years in jail for his online criticism of Saudi clerics

RCMP, search crews hunt for 4-year-old boy missing near Mackenzie

George went missing early Saturday afternoon

Canadian entrepreneurs turning beer byproduct into bread, cookies and profits

Some breweries turn to entrepreneurs looking to turn spent grain into treats for people and their pets

Canada ‘disappointed’ terror suspect’s British citizenship revoked

Jack Letts, who was dubbed “Jihadi Jack” by the U.K. media, has been detained in a Kurdish prison for about two years

Chrystia Freeland condemns violence in Hong Kong, backs right to peaceful assembly

There have been months of protests in the semi-autonomous region

B.C. VIEWS: Log exports and my other errors so far in 2019

Plastic bags, legislature overspending turn out differently

Most Read