In recent times, increased average home prices are now the order of the day in Greater Victoria and the Lower Mainland leaving potential home buyers in desperation.
A look at Vancity’s list of districts shows that seven of the region’s areas are part of the 30 most expensive housing markets with Oak Bay taking the lead as the priciest with the affordability rate decreasing by 27.3% the previous year.
Homes in Sidney have also been expensive, with the average home prices increasing sharply and the affordability rate declining by 17%. Other municipalities also recorded declines in their affordability levels including North Saanich with a 16.8% drop, Central Saanich 14.7%, Esquimalt 11.6%, Victoria 8.1% and Sooke 5.7%.
According to the president of the Victoria Real Estate Board, Ara Balabanian housing markets especially in Greater Victoria will undoubtedly observe expanded prices after some time.
He went on to note that this is a common market trend because at some point in time, market activities stabilize and then at some other time, the median prices escalate.
“I envision some leveling out as our free market activity balances out. At this moment, stock is low, so we are left with very little option but to take care of the demand from purchasers”, he added.
There was a 10% increase in the average home prices highlighted in the Vancity report of Greater Victoria which sees home prices soaring more than three times their value in the previous year.
In Oak Bay and Sidney, the average home price rose by 28% and 18% to $1.04 million and $495,000 respectively.
The report proposed the district saw just “minor weight” on moderateness in the most recent year, as the middle wage in the locale stays solid at $90,361, contrasted with Vancouver at $79,498.
In any case, home affordability according to Casey Edge, executive director of the Victoria Residential Builders Association is fast becoming a major problem for the region.
“It originates from the absence of decent territorial lodging techniques,” he stated, noticing there are 13 districts with changing standards and advancement charges, all securing their territory.
Edge went on to say that housing is being overshadowed by Agricultural Land Reserve and anti-development organizations in the cities.
The outcome has translated into a shortage in supply with the area anticipating to have 2,400 new homes which is a decline from the previous year which saw the construction of 2,933 new homes with home prices and demand increasing.
He said that home prices are influenced by rising construction cost in the region, for example, Victoria, the organization of natural advancement allows territories in Saanich and makes alteration in the construction laws around vitality effectiveness. This in turn Edge said increases the prices of homes.
Vancity’s report also suggested that instead of prospective buyers purchasing homes on their own, they can consider sharing the cost with a friend or family member so they can easily make down payment for their home which will help them save up for other household expenses.
The report went on to suggest that the government should take actions in creating more affordable homes in the region.