REAL ESTATE IN VICTORIA...Keeping You Informed Summer 2015

WHERE DO CANADIANS WANT TO LIVE?

In March of this year, the TD Bank released the results of a survey of 6,149 Canadians aged 18 years and older that wasundertaken by Environics Research Group on the question of where they would prefer to live. The survey also provided adetailed analysis on the preferences of a subgroup of 4,455 parents and prospective parents.

Canadians are evenly split on where they would prefer to live, 33% preferred urban living, 31% preferred the suburbs and 32%preferred rural or small town Canada. W hen broken down by age grouping, the survey found somewhat of a generationaldivide, with younger Canadians indicating a preference for urban living and with older Canadians preferring rural or small townlife. For example, 38% of millennials (born early 1980s to early 2000s), 36% of GenX (born early 1960s to early 1980s), 28%of baby-boomers (born mid 1940s to early 1960s) and only 29% of seniors (born pre-1945), indicated that they preferred tolive in a major city. However, there was a decided preference among all the age groupings that they would prefer to raise afamily in a suburban environment.

The survey also found some interesting findings with regard to the preferences of British Columbians. The following findingshave been excerpted directly or paraphrased from the survey report:

If given the choice, 37% of British Columbians say they would prefer to live in an urban environment, which wassignificantly higher than the national average of 33%, while 30% said they would prefer a suburban environment;

39% of BC parents and prospective parents said they would prefer to raise a family in a suburban environment, while29% would choose an urban environment;

66% of British Columbian parents and prospective parents said the expense of living is an unappealing aspect ofraising a family in a city, compared to the national average of 52%; this was followed by 58% who mentioned thecongestion of living in an urban environment (43% cited lessoutdoor space and 41% cited a smaller living space asunappealing aspects of urban living);

37% of BC parents and prospective parents would be willingto forego living space to live in an urban environment,compared to the national average of 32%;

53% of BC parents and prospective parents felt family-sizedcondos were appealing, compared to the national average of44%, while 43% felt family sized condos were unappealing;and

Among those who found family-sized condos appealing, 47%said it was due to less maintenance, 53% said more personalliving space and 46% said more amenities for children.

MOMENTUM CARRIES INTO 2 QUARTERND

TABLE 1: STATISTICAL TRENDS - ALL RESIDENTIAL (Greater Victoria and Other Areas)

QUARTER-TO-QUARTER COMPARISONS

2 Qtr 14 2 Qtr 15 Changend ndNew Listings 4,013 3,928 -85 Sales 2,051 2,539 +488Avg Sale Price $497,061 $525,185 +$28,124 Median Sale Price $452,000 $470,000 +$18,000Ratio Sales Listings .51 .65 +.14Avg Days to Sell 60 56 -4Sale Price as % of Org List Price 95.7% 96.6% +0.9%Mortgage Rates (Posted 3 yr Fixed BoC) 3.55% 3.39% -0.16%

2 REAL ESTATE IN VICTORIA...Keeping You Informed Summer 2015

TABLE 2 REAL ESTATE ACTIVITY - Greater VictoriaJuly 2014 to June 2015

Single Family Dwellings

District* Sales Ratio Avg. Sale Price % Chg** Victoria/VW 498 .69 $619,404 +1.8Oak Bay 284 .68 $935,946 +4.3Esquimalt 124 .73 $470,932 -3.3View Royal 96 .69 $533,287 -1.5Saanich East 825 .71 $663,448 +4.8Saanich West 360 .65 $535,182 -5.0Central Saanich 191 .62 $608,119 -1.4North Saanich 181 .74 $691,697 +8.9 Sidney 134 .66 $483,479 +7.8Highlands 22 .31 $652,952 +10.2Colwood 208 .57 $516,674 +5.2 Langford 529 .57 $490,714 +0.4Metchosin 44 .55 $680,723 +8.9Sooke 266 .55 $392,332 +2.1Waterfront 153 .49 $1,234,899 -6.1Totals 3,915 .64 $6218858 +2.7Gulf Islands 263 .58 $595,320 +24.0Malahat & Area 278 .60 $4853270 +11.0*District Avg. Sales Prices exclude sales of Waterfront

Condominiums 1,869 .57 $330,304 +4.7Townhouses 750 .64 $423,479 +2.2 ** Percentage Change over period July 2013 to June 2014

THE VICTORIA MARKET

The momentum exhibited in the 1 Qtr of this year has carriedstinto the 2 Qtr as the Victoria real estate market edged intondsellers market territory. Sales and prices were up significantlyfrom the 2 Qtr of 2014. The ratio of sales-to-listings (a measurendof market strength) has strengthened. Moreover, properties tookless time to sell and they sold about 3.4% below the original listprice, an improvement of +0.9% over last year, suggesting buyersnow have less negotiating room.

As shown in Table 1, the number of new listings was 3,928, downslightly from 4,013 in the 2 Qtr of 2014. On the other hand,ndsales of residential properties (i.e., all types of housing, excludinglots/acreage and commercial) through the Victoria Real EstateBoards MLS totalled 2,539 in the 2 Qtr of 2015, up 24% fromnd2,051 sales in the 2 Qtr of 2014. The sales-to-new-listings rationdwas .65 in the 2 Qtr of 2015, up significantly from .51 a yearndago. Both average and median sale prices strengthened. Theaverage sale price of a residential property in GreaterVictoria and other areas was $525,185 in the 2 Qtr of 2015,ndup 5.7% from $497,061 in the 2 Qtr of 2014. The median salendprice was $470,000, up 4.0% from $452,000 last year.

The figure of $525,185 compares to average sale prices of$905,701 in Vancouver, $649,599 in Toronto, $574,557 in theFraser Valley and $465,941 in Calgary for the month of May2015.

Table 2 summarizes real estate activity over the past twelvemonths by District and by housing category and shows thepercentage change in average sale prices year-over-year.

REAL ESTATE ACTIVITY 2 QTR 2015ND

Sales of SFDs in Greater Victoria in the 2 Qtr of 2015 totallednd1,408, up 28% from 1,104 sales in the 2 Qtr of 2014. Thendaverage sale price of SFDs in the 2 Qtr of 2015 wasnd$648,434, up 4.3% from an average of $621,596 in the 2 Qtrndof 2014. Moreover, the median sale price was $565,000, up 4.6% from $540,000 in the 2 Qtr of 2014. SFDs that sold inndthe 2 Qtr of 2015 were on the market for an average of 46 days, down from 50 days last year. The sales-to-listings rationdwas .68 in the 2 Qtr of 2015, well into sellers market territory, and well up from .52 last year.nd

Condominium sales also increased in the 2 Qtr of 2015 with sales of 621, up 30% from 479 sales in the 2 Qtr of 2014.nd ndThe average sale price for a condo was $333,591 in the 2 Qtr of 2015, up 5.9% from $315,111 in the 2 Qtr of 2014.nd ndThe median sale price was $284,000, compared to $275,000 last year. Condos took an average of 54 days to sell in the2 Qtr of 2015, down from 62 days last year. The sales-to-listings ratio was .62, up from .51 last year. nd

Townhouse sales totalled 249 in the 2 Qtr of 2015, up from 217 sales in the 2 Qtr of 2014. The average selling pricend ndin the 2 Qtr of 2015 was $418,935, up 1.2% from $414,046 in the 2 Qtr of 2014. The median sale price was $390,000,nd ndlittle changed from $389,000 last year. Townhouses took an average of 49 days to sell in the 2 Qtr of 2015, down from 57nddays last year. The sales-to-listings ratio was .64, compared to .56 last year.

Real Estate in Victoria ...Keeping You Informed: I provide this newsletter to clients, customers and friends to help them keep informed of developmentsin the real estate market in the Victoria area. If you do not want to receive this newsletter in the future, please let me know. It is not intended to solicit orinterfere with existing listings or Agency relationships. The information contained herein is based on sources which are believed to be reliable, but it is notguaranteed. The content of this newsletter is copyright. The data and information outlined herein was derived from a number of sources including: theVREB, the BCREA and the CREA. The Publisher is responsible for the analysis of the data and any opinions expressed herein.