As we know, Victoria has long been a laggard compared to the rest of the country when looking at prices movements since 2008 when we first started peaking out. Even with the recent price surges, we are still only 8% above the level of 8 years ago. A truly miserable rate of appreciation that puts us near the bottom of the heap in Canada, while other cities have appreciated anywhere from two to six times as much.
That’s the wide view. But what’s going on recently? Looking at year over year price changes, we see the spaghetti of price changes gathering into groups. Across most markets, prices are stalling out or falling. Calgary, Edmonton, Winnipeg, Ottawa, Montreal, Quebec, and Halifax all have converged around the big zero and are going nowhere.
Meanwhile Toronto and Vancouver are going stratospheric, and Hamilton and our own Victoria are being sucked into their vortex. When those two markets correct, will we get sideswiped as well? The thing about corrections is, they tend to over-correct, and while I don’t see large risk in Victoria’s market, the capital of risk is just across the straight.
Also a Monday stats update courtesy of the VREB via Marko Juras.
|Wk 1||Wk 2||Wk 3||Wk 4|
|Sales to New Listings||
|Months of Inventory||
Sales still running near 40% ahead of the first week of February 2015, although the family day might confuse that a bit.