Market to remain balanced in 2020 with “sellers market” like conditions
The Victoria housing market is expected to remain balanced in 2020, with “sellers market” like conditions such as low days on market and multiple offers in the most desirable locations. A slight increase in sale prices of three per cent over the next 12 months as demand remains high while inventory still trends well below Victoria’s 10-year average is expected.
Housing affordability continues to challenge buyers in this region when it comes to home ownership and rentals due to lack of supply. Demand for condos continues to rise as many first-time home buyers can afford this property type.
The South Victoria areas such as Fairfield, Rockland, Gonzales, James and Downtown are expected to be the hottest neighborhoods in 2020 due to high demand. Bear mountain is expected to see more demand as it continues to build more developments, with both single-family and strata offerings.
Some of the top neighbourhoods in Victoria for sales include Saanich, Langford, Oak Bay and Sidney. First-time buyers and move-up buyers drove demand in 2019.
From a national perspective, RE/MAX anticipates a leveling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto, as we move into 2020. Healthy price increases are expected, with an estimated 3.7-per-cent increase in the average national residential sales price.
“The drop in sales in key markets across British Columbia can be partially attributed to Canadians’ increasing difficulty in getting an affordable mortgage in the region,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “The situation created by the introduction of the mortgage stress test this year, as well as continually increasing interest rates, means more Canadians will be priced out of the market.
Click to read the full RE/MAX 2020 Housing Market Outlook Report.