2695 replies to this topic

[Fernwoodian]

Wow. What street?

 I'm guessing it's 1573 Wilmot Pl.... asking $825, sold for $1,008,000

[Mike K.]

Incredible. I wonder if we're going to see another run-up like we did exactly 10 years ago.

[LeoVictoria]

Incredible. I wonder if we're going to see another run-up like we did exactly 10 years ago.

 

We are certainly approaching very similar market conditions.

[Mike K.]

Real-estate sales surge 47% in Victoria as February ends with near-record high

http://victoria.citi...ar-record-high/

 

Metro Victoria's real-estate transactions have surged to levels not seen since the early 1990's, according to statistics released by the Victoria Real-Estate Board.

 

Throughout the month of February a total of 772 sales were recorded, only eight short of 1992's February record of 780 sales. Last year's sales for the month paled in comparison with 542 sales.

 

"Near record-breaking activity, certainly the best since 1992, combined with very low inventory has given rise to buyers getting into bidding wars all over the region. There is such huge demand and such restricted inventory that we're seeing upward price pressure on an annualized basis of 10% right now," said Victoria REALTOR® Marko Juras of Fair Realty. [Full article]

[Mike K.]

[Mike K.]

Stats courtesy of Marko. Sorry for not posting earlier, it completely slipped my mind.

Tuesday, March 1st

Feb 2016 | Feb 2015
Net Unconditional Sales: 772 | 542
New Listings: 1,160 | 1,108
Active Listings: 2,562 | 3,480

Please Note
Left Column: stats for the entire month from this year

Right Column: stats for the entire month from last year

[VicHockeyFan]

“We are seeing multiple offers in many transactions throughout the board area because there are more buyers than sellers,” Margo Hoffman, president of the Vancouver Island Real Estate Board, said.

 

“We are beginning to see some migration from Vancouver that isn’t retirement focused.

 

“An interesting development we’re watching is young professionals who are trading in their homes for a significantly nicer property on Vancouver Island and then commuting to their jobs on the Lower Mainland.”

 

It’s easier to commute these days than in the past, Hoffman said, citing float planes and helicopter service.

 

- See more at: http://www.timescolo...h.c3gwZwkM.dpuf

 

  What a crock that line is.  Helicopters have been around for 30 years, float planes decades longer.

[LeoVictoria]

- See more at: http://www.timescolo...h.c3gwZwkM.dpuf

 

  What a crock that line is.  Helicopters have been around for 30 years, float planes decades longer.

 

Those articles are mostly sensational nonsense anyway.  Yes there are some more out of town buyers, but the vast majority of buyers are locals.   The market is red hot because tons of locals have started buying.   Out of town buyers have an impact, but they're not the reason why the market has taken off.

[MarkoJ]

My sense is lower mainland buyers could be pushing 10% this year.  I haven't thought it out and it is late at night but would 10% of mainland buyers have a bigger force on the market than an equivalent of 10% local buyers.  Reason being the 10% of lower mainland buyers aren't contributing to inventory? (They have nothing to sell.) Whereas most local buyers have sold something prior to the purchase?

[LeoVictoria]

My sense is lower mainland buyers could be pushing 10% this year. I haven't thought it out and it is late at night but would 10% of mainland buyers have a bigger force on the market than an equivalent of 10% local buyers. Reason being the 10% of lower mainland buyers aren't contributing to inventory? (They have nothing to sell.) Whereas most local buyers have sold something prior to the purchase?

Hmm, good point. Although wouldn't first time buyers have the same effect on the low end of the market?

[Mike K.]

And that's 10% of a market with 40% more sales, making that 10% out to be triple the volume of Lower Mainland buyers two years ago.

[AllseeingEye]

Interesting to experience the Vancouver "frenzy" firsthand; I'm over here for a trade show and some other meetings this week staying in the heart of Kits.

 

Every and I do mean every Kits "knock down" it seems is or has undergone major renos to take advantage of the silly sales prices being realized. Over 4100 properties sold in the GVRD last month and I actually saw, literally, lineups at several open houses - I'm certainly not even looking for them I just stumble by them on my way through the neighborhood (Collingwood and 6th Avenue area). What really stands out is the $$$$ clearly being spent on the lots, landscaping and gardens - multiple thousands of dollars for shrubs, trees etc., none of which even begins to speak for the huge sums of money spent on the actual house renos. 

 

This mainland housing madness culminated with the Sun story this week of a Dunbar heritage house - updated and completely renovated multiple times - that sold in 2012 for $2.5 million and now being gutted, stripped and soon to be demolished by its offshore owner - with an altogether new home being constructed and property to go on the market for $7.2 million:

 

http://www.vancouver...__lsa=94e1-27cf

[MarkoJ]

This is not good news for the average person.

[VicHockeyFan]

It's good news for the average homeowner. Chinese cash is making the all millionaires. Why is that so bad?

[North Shore]

'Cause its hollowing out the city? When I went to school in the Dunbar area, all of those houses were filled with 'average' people - teachers, nurses, engineers, etc..( and a good number of them were single-income families. Now, my brother and his wife - he's a Dentist, she's a Dr. - can't afford to move there, even after selling their paid-off home on the east side..

I get that you're saying its good for the individuals, though.

[Daveyboy]

I think the issue is that it is difficult for younger people living in Victoria to get into the market and it will not get better in the near future.  Not so easy getting a mortgage for $800,000 +

 

It's good news for the average homeowner. Chinese cash is making the all millionaires. Why is that so bad?

[G-Man]

There must be more buyers coming from outside of Victoria. You cannot have perpetually low inventory, multiple offers and an even lower rental vacancy if it is all locals buying. The math does not work. 

[dasmo]

Millennials leaving home with large down payments curtesy of mom and dad....

[LeoVictoria]

And that's 10% of a market with 40% more sales, making that 10% out to be triple the volume of Lower Mainland buyers two years ago.

 

Well we don't actually know that.   Sales are up, and we have stats from 2015 and 2016, but we don't know the percent of foreign buyers currently in the first two months of 2016.

[LeoVictoria]

There must be more buyers coming from outside of Victoria. You cannot have perpetually low inventory, multiple offers and an even lower rental vacancy if it is all locals buying. The math does not work. 

 

First time buyers can be local and still add to demand.   But yes, there has to be increased net migration to create the tight rental market and the tight housing market at the same time.