For a year it’s come up regularly that at some point we must be hitting minimum inventory levels and sales just can’t be sustained because there isn’t anything to sell. Well the market continued to prove everyone wrong, with December matching the year before despite there being 1000 less properties for sale. At the same time prices in the core have appreciated more than the outer areas.
We’ve managed to eek out year over year increases every month in 2016 but if you look closer, some of the most popular neighbourhoods seem to have hit a wall in 2016 and sales have fallen year over year. Oak Bay is the most prominent one, with large sales declines compared to last year.
Victoria has also been faltering, with a big sales decline in December.
Less traditionally favourable regions like Esquimalt and Langford have taken up the slack in sales.
Interestingly enough, while inventory is definitely down in Oak Bay, by the end of 2016 it had recovered to essentially match the levels of late 2015.
So there could be higher sales with current inventory, but it seems the huge price increases have driven some buyers out of the expensive areas in favour of the cheaper neighbouring ones. Question is, will this expand to the rest of the region this year?