There is a lack of homes for sale in Victoria
There are several reasons that it's so hard to find homes for sale; take a look at what might be the main drivers of lack of inventory. Young couple vs Older couple:
- Many homeowners in Victoria wish to move up because they have more children on the way and need a larger place. Selling might be easy. It's the buying back into the market that's the hard part. For example, a young couple who bought a few years ago for $500,000 now need a larger home closer to a school. Let's say the couple might be able to sell for $600,000 a whopping $100,000 over what they paid. Pretty good return for a few years! The couple now begins to look for a larger home and discovers that the "perfect" place to raise a family that's near school and shopping etc. has risen to $750,000; maybe out of reach for them to finance as they have the same jobs and little pay increases. So they think "why sell when we can't afford to buy?" And, this example is not uncommon.
- Older homeowners (now empty nesters) are looking to downsize. An older professional couple who has lived in Vancouver for a number of years and enjoyed their home while raising their kids. 20 years ago it was affordable to buy thier home and now the investment has paid off handsomely; their "profit" is surprisingly large with the heated Vancouver real estate market of Buyers. Their mortgage was paid off years ago, the couple is flush with cash and looks towards finding a quiet place on Vancouver Island. To their surprise, they find that the home of their dreams can be bought for far less than what they sold the Vancouver home for. With a cash sale and short completion, they are on their way to the "Island Life" and, once again, the inventory of homes for sale is reduced.
There are other reasons for the lack of
homes for sale in Victoria
but these two appear more frequently
as we approach the spring market.
What to do?
Although it's hard to deal with this if you are a Buyer, these tips will help you during a period of "temporary insanity".
Take a deep breath & plan. Don't jump into panic mode. Don't listen to rumors.
Speak to a financial advisor and discuss what you could afford if you moved.
Choose a Realtor® you can trust to give accurate pricing info should you sell.
Take a hard look at what you could sell at & what it's going to cost to buy.
If you can't afford to buy your dream home, consider downsizing.
If you need a larger home, consider a different area of town.
If buying is not an option, consider renovating to accommodate your needs.
If none of the above work, take a pause; maybe prices will stabilize.
For more information on Victoria's real estate market or if you have a question:
Bruce McCallum, REALTOR® DFH Real Estate
Victoria, BC Canada
(250) 858-5762 firstname.lastname@example.org