The increased average home prices in Greater Victoria and the Lower Mainland are now the order of the day, leaving potential home buyers in extreme anxiety.
A gaze 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 decrease by 27.3% the previous year.
Homes in Sidney have also been expensive, with the median home prices swelling sharply and the affordability rate waning by 17%. Other municipalities also recorded debilities 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 particularly in Greater Victoria, will undoubtedly observe stretched prices after some time.
This is a common market trend because at some point in time, market activities stabilize and then at other times, the median prices spiral.
“I envisage some steadying as our free market activity balances. At this moment, stock is low, so limited options available to take care of the demand from purchasers”, he added.
There was a 10% rise in the average home prices highlighted in the Vancity report of Greater Victoria which saw home prices rising 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.
Home affordability according to Casey Edge, executive director of the Victoria Residential Builders Association is fast becoming a major problem for the region.
“It coins from the absence of decent provincial housing practices,” 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 dominated by Agricultural Land Reserve and anti-development organizations in the cities.
The outcome has interpreted into a shortage of supply in the area, expecting to have 2,400 new homes which is a debility from the previous year, which saw the construction of 2,933 new homes with home prices and demand increasing.
Home prices are predisposed 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 recommended that instead of prospective buyers purchasing homes on their own, they can consider sharing the cost with a friend or family member.
The report therefore proposed that the government take adequate measures in creating more affordable homes in the region.
J C Loum