“this represents the lowest inventory of active listings at month-end in at least the last 25 years”.
VICTORIA REAL ESTATE BOARD – JANUARY 2021 MONTHLY REPORT
Listings are down over 30% and buyers have bought up the new inventory and then some, with sales volume up 57% over a year ago.
It is commonplace to see bidding wars and sales well over the asking price across all single family home price points.
Proportion of Homes Selling At or Above Asking Price
Single Family Homes on the Westshore have the highest tendency to sell for above-asking price. Colwood leads the region with a staggering 52% of listing selling for over asking, while 14% went for the full asking price. Langford saw approximately 53% of homes sell at or above the asking price.
Municipalities with higher home prices like Oak Bay, North Saanich, and Victoria saw a fewer proportion of full price or above asking price sales. Although, one in three (1/3) home buyers give into Seller’s price demands.
5 Tips on How to Get an Accepted Offer in Victoria’s Real Estate Market
In this market, every detail in your offer makes an impact on whether it is accepted. Here are five tips to ensure your offer is as strong as possible:
- Get out and see the property immediately – you only have 24-48 hours to view the property and decide if you want to submit an offer.
- Submit an unconditional offer – Sellers will often accept unconditional offers over conditional offers even if the sale price is a little bit less ($5-20k). Get organized and be selective in your purchasing decisions. Going unconditional gives you the best chance of success.
- Give the Sellers their preferred closing dates – making the transaction convenient for the seller makes them more likely to accept your offer.
- Shorten the subject period – If you must have a subject to inspection or financing make it short as possible. Reducing your due diligence to 5-7 days will make your offer stand out.
- Go in at your best price – if it’s really the perfect home go in with your best foot forward. Don’t get bogged down trying to save $5,000 to $20,000 on the purchase price. In the long run, it will make very little difference to your mortgage payments and re-sale profit. Don’t regret losing out on your perfect home over nominal amounts of money.
In the current market, being quick to act is crucial. The average number of days on the market has reduced significantly in January 2021 as buyers get a head-start on the spring homebuying season. This demand is fueled by rock-bottom interest rates and a preference for single-family homes.
Average Premium over 2020 Assessed Price
If you’d like help navigating and capitalizing on the current real estate market, please don’t hesitate to reach out.
Dustin Miller is an advocate for transparent real estate data and prides himself on having Vancouver Island’s most popular sold home database on the internet. If you’d like to search for recently sold home prices in your neighbourhood, use our interactive map feature.