lisa williams

2009 - A Year of Recovery for Victoria Area Real Estate Market

January 4, 2010

Last year was marked by a surprising and strong recovery for the Victoria area real estate market following the slowdown in 2008 and the early part of 2009. Total sales of homes and other properties rose by 24 per cent compared to 2008 while the value of all property transactions through the Victoria Real Estate Board’s Multiple Listing Service® (MLS®) system rose over 20 per cent to nearly $3.8 billion.

Victoria Real Estate Board President Randi Masters says the strength of the recovery came as a welcome surprise, "Given the significant world-wide economic downturn we were very pleased to see the real estate market recovering so quickly. With interest rates expected to remain low in the coming months, we are anticipating a strong and balanced market in the coming year." Masters noted that while sales rebounded strongly last year, overall average prices showed little change compared to 2008. The overall average price for single family homes declined by less than one per cent, condominium prices declined by less than three per cent and townhome prices remained essentially unchanged.

Masters added that December saw a normal decrease in sales compared to November with some minor fluctuations in prices. The average price of single family homes in Greater Victoria last month was $651,316. Sixteen sales of over $1 million, including one sale in Central Saanich of over $5 million affected the overall average. The six-month average was $601,237 while the median price was significantly lower at $555,000. The average price of all condominiums sold in December was $345,907; the average for the last six months was $324,919 while the median was $289,000. The average price of all townhomes sold last month was $477,998; the six-month average was $450,305 and the median was $422,500.

MLS® sales last month included 246 single family homes, 115 condominiums, 44 townhomes and 12 manufactured homes.

Masters noted there has been a substantial decline in the number of properties available for sale, "As of the end of December, there were 2,557 properties available for sale -- down 33 per cent from a year earlier."