New figures from the Victoria Real Estate Board (VREB) show realtors sold 1,116 properties, 288.9 per cent more than in in April 2020, but 4.9 per cent fewer than the previous month of March. 
(Black Press Media File).

Greater Victoria real estate sales slow down in April

Market remains overheated, but shows signs of slowing down

The local real estate market took a breath in April with a local analyst suggesting a slow-down ahead.

“The market unquestionably remains red hot, but there are enough small cracks that I think this may mark the start of some cooling off instead of the relentless heating we’ve seen in the past year,” said Leo Spalteholz, a local realtor and analyst at housevictoria.ca.

He made that these comments after new figures from the Victoria Real Estate Board (VREB) show realtors sold 1,116 properties, 288.9 per cent more than in April 2020, but 4.9 per cent fewer than the previous month of March.

While the figures confirm that the market remains in the words of Spalteholz “overheated,” he predicts “we’re going to see cooling soon” pointing to a number of current figures and future developments pointing in that direction. They include among others a small build up in inventory (with sales still remaining exceedingly strong) and tightening of the stress test assessing the credit-worthiness of future buyers in June. He also challenges the theory that consumers flush with cash will continue to fuel the housing market.

“In fact I think we’ll see a housing hangover as the money that had been redirected to housing flows back into consumer spending,” he said. “You can’t have pent up demand when nothing has been pent up, in fact quite the opposite as the pandemic brought a lot of demand forward.”

RELATED: Greater Victoria real estate expert laments lack of government action on housing supply

VREB president David Langlois predicts that the market will remain unbalanced for some time.

“Our market is based on supply and demand and there is a disconnect right now with record low supply and high demand,” said Langlois. “Unfortunately, our housing supply is not as elastic as market demand is. Desire for homes in a certain market can erupt quickly, while building homes takes years. These realities make it hard to bring our market into balance.”

Langlois repeated previous demands that governments do more to increase supply than dampen demand through taxes and borrowing limitations.

“Municipal governments adding costs and time delays to new developments do not bring balance,” he added. “A commitment to developing our communities over the long term may.”

The Home Price Index (HPI) benchmark value for a single family home in the Victoria Core in April 2021 was $996,500, an increase of 12.6 per cent from April 2020 and an increase of 2.9 per cent increase from March 2021. The HPI for a condominium in the Victoria Core in April 2021 was $547,600, an increase of 2.6 per cent.

Figures show 1,454 active listings for sale at the end of April, 36.9 per cent fewer properties than the total available at the end of April 2020 and 11 per cent more than the 1,310 active listings for sale at the end of March 2021.


Do you have a story tip? Email: vnc.editorial@blackpress.ca.

Follow us on Twitter and Instagram, and like us on Fac

wolfgang.depner@

peninsulanewsreview.com

Just Posted

Mural artist Paul Archer will soon begin work on a piece on the rear of a building at 100 Burnside Road West. (Gorge Tillicum Community Association)
Back of Burnside building in Saanich to feature mural of hope and positivity

Artist Paul Archer says subject will inspire memories, depict children’s future, sunshine, flowers

Victoria Truth Centre and Long-term Inmates Now in the Community (L.I.N.C.) Society are hoping to replicate in Langford the format used on Emma’s Farm in Mission, pictured here. (Patrick Penner/Black Press Media)
Victoria Truth Centre hopes to grow transformative justice in Langford

Purchase proposal would see offenders, survivors and families work on organic vegetable farm

Tyson Muzzillo, regional manager of BC Cannabis Store, welcomes shoppers to their Uptown location, opening on June 16. (Megan Atkins-Baker/News Staff)
Government-run cannabis store opening at Saanich’s Uptown

BC Cannabis Store the first for government in Greater Victoria, 27th in province

The stretch of trail north of Royal Bay Secondary connecting to Painters Trail at Murray’s Pond will be closed temporarily this week for invasive species removal. (Black Press Media file photo)
Colwood trail behind Royal Bay Secondary temporarily closed for invasive species removal

Cloure in effect from 9 a.m. Wednesday to 10 a.m. Friday this week

Proposed design for the Topaz Park bike and skate park elements. (Courtesy City of Victoria)
Victoria requesting feedback on Topaz Park redesign

Public input now being taken for proposed skate, bike park ideas

People watch a car burn during a riot following game 7 of the NHL Stanley Cup final in downtown Vancouver, B.C., in this June 15, 2011 photo. THE CANADIAN PRESS/Geoff Howe
10 years ago: Where were you during the 2011 Vancouver Stanley Cup Riots?

Smashed-in storefronts, looting, garbage can fires and overturned cars some of the damage remembered today

(Black Press Media file)
Dirty money: Canadian currency the most germ-filled in the world, survey suggests

Canadian plastic currency was found to contain 209 bacterial cultures

(pixabay file shot)
B.C. ombudsperson labels youth confinement in jail ‘unsafe,’ calls for changes

Review states a maximum of 22 hours for youth, aged 12 from to 17, to be placed in solitary

Eleonore Alamillo-Laberge, 6, reads a book in Ottawa on Monday, June 12, 2017. THE CANADIAN PRESS/Sean Kilpatrick
Parents will need to fight ‘COVID learning slump’ over summer: B.C. literacy experts

Parents who play an active role in educating their children this summer can reverse the slump by nearly 80%, says Janet Mort

The border crossing on Highway 11 in Abbotsford heading south (file)
Western premiers call for clarity, timelines on international travel, reopening rules

Trudeau has called Thursday meeting, premiers say they expect to leave that meeting with a plan

The B.C. government’s vaccine booking website is busy processing second-dose appointments, with more than 76 per cent of adults having received a first dose. THE CANADIAN PRESS/Jonathan Hayward
B.C.’s COVID-19 infections, hospitalizations stable for Tuesday

108 new confirmed cases, 139 in hospital, 39 in intensive care

Cowichan Tribes man Adrian Sylvester is worried that he was targetted by a trailer hitch thrown from a vehicle. (Facebook photo)
Cowichan Tribes man worried he was target of trailer hitch

Adrian Sylvester says no one has reported a missing hitch after one nearly hit him

Graeme Roberts, who was mayor of Nanaimo from 1984-86, died this month at age 89. (Photo courtesy Nanaimo Community Archives)
City of Nanaimo flags at half-mast as former mayor Graeme Roberts dies at 89

‘Giant-killer’ beat out Frank Ney in mayoral election in 1984

Most Read