Local real estate gets a boost from economic growth

Greater Victoria had an increase in sales of about 25% in the past year and according to experts, Greater Victoria’s real estate market will surpass other markets in British Columbia. The success of the market is mostly attributed to the rapid economic growth this year. New jobs were made available across the country, tight mortgage rules, increase in population are most of the leading contributing factors pushing the market.

Furthermore the tax on foreign investors which mostly affects mainland markets will drive buyers towards Lower Mainland and will also increase on home prices.

Victoria Real Estate Board president held a contrast opinion saying, he does not believe that buyers are coming to the area because of the foreign investor tax.

Notwithstanding, Greater Victoria real estate is hoping for a growth in the housing sector.
Don Campbell, senior analyst in a statement disclosed that “with the current economic and demographic growth, buyers will see the market surpass other markets in the province, and with fewer slow-market periods.”

Greater Victoria has become attractive to job seekers as with the development of economic growth, more jobs are being created and home prices are very affordable in the city hence more people want to relocate there.
However strict home listings may dampen the sales of homes as there were 1,938 properties for sale at the end of October. There was a 39% decrease for the previous year.

In the meantime, even though sales in Vancouver were on the decline in the last month, there was a stable month to month sales.

There was also a year-on-year sales gains on Vancouver Island and in British Columbia’s Interior who are not part of the tax imposed on foreign investors.

Taking a look at the overall home sales, the Real Estate Board of Greater Vancouver experienced a decline in sales of 31.4%, but was lower than the 42.6% drop in the previous year.
In October, the standard home price stood at $481,994 which was an increase of 5.9%. putting aside Greater Vancouver and Greater Toronto, the standard price was $361,012.