The current Real Estate market in Victoria is a "Sellers Market". This means that due to the historically low inventory of home options for Buyers to select from, home prices are on the rise. This is not a new topic of conversation for Victorians. If you live here, you probably know the challenges faced by someone in the market for a new home to purchase.
What might not be immediately apparent, is the impact this market has upon those not currently interested in purchasing a home. We all need a place to lay our head at night. For some, it makes better sense to rent rather than buy. But this is not an easy task by any means. Especially for a family with pets. For these folks the housing options are currently very, very slim.
According to the latest figures from the Canadian Mortgage and Housing Commission (CMHC) Greater Victoria's average apartment vacancy rate dropped to .6% in October, down from 1.5% in October 2014. The national average is 3.3%. A healthy vacancy rate would be between 5-7%. Competition is fierce for available rental units. According to the Tenant Resource Advisory Center in BC it's not uncommon for 30-40 parties to show up to view one vacant rental unit.
Affordability can also be a concern and a big issue. In the CRD 34% of households are rentals. Of those, 47% spend more than 30% of their income on rent with 24% spending more than half their income on rent.
The cost of a home is one of the main factors driving demand. The benchmark price for a single family home within Victoria's core is $684,900 in April 2016, that's up almost 18% from the same period last year.
If you're in the market to purchase an investment property, I can help. Finding the right property is key. To be successful you have to be prepared. Have your financing in place, have a clear understanding of your objectives and ensure you are in a position to make a quality decision in a timely matter.