Do you want to know what to expect in Canada for the Housing Market 2016?
Below is a summary of the Housing Market 2016 Report put out by RE/MAX. If you have any questions regarding housing market 2016 information in our local area, our contact information is listed below.
RE/MAX 2016 price projection for the average residential sale price in Canada is 2.5 per cent. This is based on the continued demand in Greater Vancouver and the Greater Toronto Area.
How does this affect us on Vancouver Island? The price increases in Greater Vancouver cause a trickle effect that spills over to other communities around these cities, including Victoria and Nanaimo on Vancouver Island.
Housing Market 2016 Summary
Competition from buyers over the limited inventory of single-family homes has pushed our prices and averages higher. Did you know:
- 91% of Canadians say that home ownership is part of the Canadian dream
- More than two-thirds of Canadians say that 10% or more of the price of a home is a good down payment
- 71% of homeowners agree that when buying or selling a home, REALTORS® provide value
Sales were steady and active in 2015 as the housing market demand remained high. Victoria is considered to be one of Canada’s most desirable cities to live in. These market conditions generally favoured sellers. Sales increased by 24 per cent year-over-year; there were 5,244 sales between January and October of this year, compared to 4,230 during the same period in 2014.
- The average residential sale price in Victoria increased 13% from 2014, rising to approximately $575,000 from $507,212
- Low inventory in the resale market has put upward pressure on the average home price. The higher price level is encouraging both new listings and competition from builders
- Buyers looking to relocate from Alberta or lower mainland British Columbia are expected to drive demand in 2016
2016 Trends for Victoria
- Victoria’s growth is expected to rise through 2016. The population is expected to increase by 4,150 people each year until 2020
- Victoria’s job market is projected to grow by 1.4% in 2016, an increase over its 0.5 per cent growth in 2015
- Due to a high volume of undeveloped land, smaller subdivision projects are expected to begin development in 2016
- The RE/MAX 2016 average residential sale price expectation for Victoria is an increase of 2.7%
The average residential sale price for Victoria, British Columbia in 2015 was approximately $575,000.
First-time buyers in Victoria are taking advantage of low interest rates to enter the market. Condos are typically at the top of the list for these first-time buyers. Some of the new condo projects under development are smaller micro apartments.
Sales increase in Victoria’s expanding condominium market and prices remain stable. This is due to a steady supply of new product. There were 1,786 sales of condo units between January and October of this year, compared to 1,412 during the same period last year. Though many of the new developments appeal to first-time buyers, there are several luxury developments on the market. These higher-end condos attract retirees and foreign investors, or those in the market for a second home.
Victoria’s luxury market is active. The majority of detached homes sold in Victoria are in the $1 million to $5 million range. Luxury buyers are often foreign investors or retirees looking to purchase upscale condos or houses on the coast, and in some cases are buyers looking for a secondary residence.
In these competitive markets, sellers want to ensure they maximize the value of their homes, while buyers look for guidance during the fast-paced bidding process.
In a recent Leger survey conducted for RE/MAX, 70 per cent of homeowners agreed REALTORS® provide value when buying or selling a home.
This report includes city centres such as Kelowna, Calgary, Edmonton, Saskatoon, Toronto and more.
For more information on how this affects other parts of Vancouver Island, particularly Nanaimo, read here.
Read the full report from RE/MAX here.
Looking for more information about your local area? Contact us.
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