Following on from a record breaking 2016, what can we expect the real estate market to do in 2017?
Will prices go Up, Down or Flatten?
There are many things that will determine the answer, some directly related to our Victoria real estate market and some related to outside influences. Low inventory across the board means that demand will stay high and we can expect the multiple offer situation we have seen continue, especially in saught after markets such as we have here in Victoria. This should see home prices continue to rise, at least in the short term.
You only have to drive down Pandora or Yates St to see that there is a boom in new condo construction, but many of these are not due for completion until 2018 and many have sold out already. So, the current price increases we are seeing in the condo market should also continue in the foreseeable future.
There is talk of introducing new regulations on foreign ownership, as we have seen in Vancouver, which may have an effect, but overall it is only a small part of our market here in Victoria. Then of course there is the “Trump Factor”.
If the US Federal Reserve raises interest rates, as has been suggested, will that effect our own interest rates?
Will new trading deals between the US and Canada, affect our economy negatively? Or will we see US citizens moving across the border in larger numbers?
In short, the new year has started off where the old one finished and we are still in a Sellers’ market although not at the level we were seeing a few months back and we are moving toward a more balanced market overall, which we believe is good for everyone.