In Victoria, B.C., it’s a seller’s market as home prices continue to remain strong, thanks to the current low interest rates, tight inventory of available properties, and a rise in consumer confidence. As in the rest of Canada, things look good in B.C. for real estate as the market continues to boom.
In Vancouver, average home prices are expected to rise by about 7.2 per cent this year over last. The outlook for Victoria is promising as well, but prices probably won’t match the province’s capital.
Some of the biggest increases are predicted for early spring, which will be an exciting time on the housing market all across the country. In aiding the country in transitioning out of the global recession, the Bank of Canada has declared that it will keep interest rates at their current lows until June of 2010, so we can probably expect a flurry of activity on the house-buying front shortly before June when interest rates are set to rise once again.
In Victoria, the availability of properties is expected to increase later on into the year as well, which will lead to some (hopefully positive) shifts in that market towards the summer.
So far, economists are predicting a steady ride for the picturesque city, at least for the first two quarters of 2010. Besides the attractive interest rates, one of the contributing factors is an increase in consumer confidence, as the positive gains in Canada’s housing market buoy buyers expectations, and offset worries of a collapse like the situation in the States.
Despite the global recession, sales in the Greater Victoria area started to rebound in the last half of 2009, with the final quarter showing a 7.7 per cent increase over the average price from the same quarter in 2008. The strongest demand in that area is for homes with good revenue potential, priced in the range of $600,000 and up. While house prices have been steadily increasing, average condominium prices remain stable in the average range of $265,000… for now.
Across the country, home prices are predicted to moderate in the later half of 2010. Until then, almost all the provinces are experiencing growth on the market.
Heleen Jacobsen
Broker of Record with InfoMarket Group GMAC Real Estate
www.infomarketgroup.com
