It is taking longer to sell single-family homes, condos and townhouses, but new transition rules for the HST and a first-time buyer’s bonus included in last month’s provincial budget are good signs for the local market, the Victoria Real Estate Board said Thursday.
Days on the market for most properties increased during the first two months of this year compared with the same period in 2011, board figures show. Average prices also slid slightly in those categories for the same period.
Monthly sales numbers and prices through the Multiple Listing Service have been released by the board for several years. On Thursday, the board published a broader range of information on close to 30 types of properties and leases. The new categories include number of units listed and sales, salestolisting ratio, the average price and the number of days properties took to sell.
Board president Carol Crabb said the local market remains relatively stable.
Real estate agents are reporting a higher number of showings and are optimistic that sales will increase, she said.
Not only do sales traditionally pick up in spring, but the sector is anticipating more sales after last month’s provincial budget included an increase in the threshold for the harmonized sales tax rebate on new homes, from $525,000 to $850,000. Homebuyers at the high end can now receive a $42,500 rebate.
Another sales driver is the first-time homebuyers’ bonus, giving eligible buyers up to $10,000 on new homes bought between Feb. 21 of this year and April 2013.
“Our members tell me that the HST transition rules, increased HST rebates and new home first time buyers bonus are stimulating traffic for both new houses and condos,” Crabb said. “I think the B.C. budget also instilled confidence. Potential buyers can see that our economy is stable and mortgage rates are incredibly low.”
With an inventory of 3,977 properties for sale in February, Crabb said there are enough listings “to let buyers perform their due diligence without making rash decisions.”
A total of 497 sales closed last month for a combined value of $231 million. January ended with 372 sales.
In February, 248 single-family (residential areas) houses were sold in Greater Victoria, matching figures from the same month a year ago, the board’s report said. The average price slid by five per cent to $579,985 from $610,975 in February 2011. Last month, the median price was $530,000.
The average dropped by four per cent for the first two months of this year to $561,477 from $587,857 in the same months last year.
The number of days to sell a single-family house rose to 63 from 59 when comparing the first two months of this year to last. Selling time for February of this year moved up slightly to 55 days from 51 for the same month last year.
However, another category of single-family houses, these on the waterfront, saw days on the market drop to 100 in the first two months of 2012, from 147 in the same months last year. The third single-family category, homes on residential acreages, rose to 127 days on the market from 114 when the first two months of the year were compared to the same months in 2011.