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After a few years of unprecedented frenzy, Vancouver Island homebuyers can finally breathe a sigh of relief as they prepare to enter a much more balanced market this fall.
The summer ended slowly, with sales in all types of real estate falling. According to the Canadian Real Estate Association (CREA), sales of both apartments and single-family homes fell 33% in August compared to the same period last year. Meanwhile, city home sales fell 43% compared to August 2021.
Inventories, on the other hand, were up 153% compared to the same month last year. These cooler market conditions have given home buyers more time to consider their options, and ultimately more leeway to negotiate with the offer side.
But according to Christine Ryan, Sales Manager at Sotheby’s International Realty Canada, prices have remained high despite this influx of inventory. Compared to last year around this time, overall prices are up 15.8% in Victoria and 18% elsewhere on the island.
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So while things have calmed down lately, it’s important to remember that a sale in these types of markets is not impossible – those looking to sell just need to be a little more patient when listing their property.
It can help to partner with the right real estate agent so that your ad stands out amid the noise.
“From a real estate sales perspective, it’s important that sellers work with a brokerage that can market the listing to make it as attractive as possible,” Ryan says.
While sales are hovering below the 10-year average, Ryan notes that activity is starting to pick up in September, which could be a good indication of an active fall market coming up.
And while the Bank of Canada recently announced its latest rate hike of 75 basis points — bringing its key rate to a 14-year high — Ryan predicts that this rate hike won’t affect Vancouver Island much like other housing markets.
“[Vancouver Island] is lucky enough to attract a strong relocation crowd who choose to retire here or make the transition to a slower pace of life,” explains Ryan. “Interest rates are less of a concern for this segment of the population.”
Due to its older buyer demographics, relatively low density, and temperate climate, Vancouver Island is consistently rated as one of the most desirable locations to live in Canada.
And that’s why, even amid cooling market conditions, the island remains one of Canada’s most stable real estate markets.
This article was created in collaboration with STOREYS Custom Studio.
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