A combination of a stronger economy and record-low unemployment numbers propelled Victoria to a robust housing market performance in Q4 2018, according to the most recent Royal LePage House Price Survey.
Victoria’s aggregate home price reached $695,793 in the fourth quarter, growing by 8.4% year-over-year. Meanwhile, condos enjoyed a 10.3% increase (to $512,024), and two-storey homes had an even more pronounced 13.2% growth rate (to $966,790).
“We saw strong price appreciation year over year in the third quarter of 2018 due to an overall lack of supply, coupled with increased housing demand generated from our healthy local economy. However, during the last half of 2018, we saw prices moderate and level out,” Royal LePage Coast Capital Realty associate broker Bill Ethier noted.
“The shortage of supply is being further shaped by a combination of federal and provincial regulations that have slowed the real estate market in the province. As a result, we are seeing a decrease in new residential construction.”
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Ethier added that Victoria has established a reputation as a good destination for sound investments and relaxed lifestyles.
“Retirees who choose to buy a condominium are competing against first-time buyers resulting in a lack of inventory. Retirees who are unable to find a condominium stay in their homes longer resulting in a shortage of two-storey home inventory. With a shortage of listings within these two housing types, prices in both property segments rose in 2018,” he explained.
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