Two weeks ago, I suggested that the real estate market in Victoria might be slowing down. At first glance – the sales volume of 704 properties sold being the highest since 2009 (776) would suggest otherwise, but strangely the inventory of 3668 active listings is at the lowest level since 2009 (3509). As Marko has pointed out, you have to go back a dozen years to find such low available listings for September.
The Single Family Home (SFH) average selling price dropped a substantial 7.3% from the previous month, and is the lowest monthly average since February. The SFH median selling price also dropped slightly, but the three month rolling average is similar to last April.
With the average SFH price dropping but the SFH median remaining fairly constant, the gap between the median and average prices is closing. This suggests that the market is shifting – with an increase in the volume of SFH selling substantially less than the median being tempered a similar increase in sales volume above the median (as indicated by the 6-year high in sales volume).
The volume of condominiums sold is up a significant 30.2% from September 2014, but the average price is down 2.8% from September last year and down 4.1% from August 2015. The volume of townhouses sold is up a whopping 51.0% from September 2014, but the average price is down 3.0% from September last year but actually up 7.9% from August 2015.
In spite of very low interest rates and a stable five months of inventory (near sellers market) from July through September: there’s an increase in volume of less expensive real estate being sold … things are cooling down.