Real Estate in Greater Victoria has been going steady since February which has been showing a stronger year then 2012. In the last 4 months, as sales continue to show their strength and inventory is decreasing, home prices haven't really changed with the increased demand. September sales ended up being higher by 15% over last year and the last 4 years. Indicating that Real Estate is on the rebound and getting stronger. We will have to keep an eye out on the next couple months to see where the market will go...usually sales tend to slow down as Christmas approaches and peoples' focus changes to family and the Holiday Season.
As can be seen by last years results, I can say, 2012 was probably the worst year to record for Real Estate in Greater Victoria. Being brought on not only by the change to lending guidelines in the late Spring but as well by the notorious HST, that confused most buyers of what it applied to and how it applied...the market came almost to a standstill. And everyone surely felt it.
Now looking back, it was the perfect time to buy. Interest rates were at their prime, with slow movement in Real Estate, creating lower home prices as well as better bargaining with accumulated inventory that sat for over six months. Lenders were constantly competing with low interest rates, looking for ways to lure the next buyers with incentives to borrow. But lot of people were scared to invest, with still a weak economy, they were thinking that home prices may go down even more and they would be left with overinflated mortgages. Like what happened in the United States. Now we see, that the opportunity is gone for many of us. However, I still think that there are still opportunities to be had for next couple of years, before things begin to fully turnaround for our economy.
Interet rates have been on the rise for the last couple months with the good progress on home sales, nothing unusual about that but come December, lenders will be bringing the rates down again for the final crunch of 2013 stimulus. So, if you are in the market to find, with all good incentives, a property? Start now, and by December you will find what you're looking for - lower home prices, lower interest rates, and a much better bargaining tool. If you are a conservative, fix rates are for you. Make sure you choose the right package deal with the right term for where you plan to be in the next few years so you don't get stuck paying out penalties because your plans changed. A costly mistake! Be prepared, learn all the right moves in investing your hard earned money, Time is NOW.
For sellers, it has been a good year. Home Sales are moving, however, you can't sell on a personal level. The home will sell if the home is listed at a current market value and definitely the right buyer will buy it.. It also goes, that when you sell at the current market price you will also buy at the current market price. Therefore, there was really no lose in value. If you don't need to sell and want a better return later on your investment - renovate and wait a couple of years.