MARKET UPDATE

JANUARY

2015

Holmes Realty Ltd. 2481 Beacon Ave.

Sidney, BC V8L 1X9

250-656-0911

WWW.HOLMESREALTY.COM

With over 10% of growth throughout last year, 2014 certainly demonstrated a great amount of consumer interest and confidence in our market.

Low interest rates coupled with a balanced market and an ample supply of inventory ulti-mately led to over 11.67% more sales in 2014 compared to 2013. Additionally, Decem-ber ended on an up-note with 389 total sales in the Victoria region, an increase of 9.6% over December 2013.

The benchmark Home Price Index value for a single family home in the Victoria during De-cember of 2013 was $479,500. December 2014 recorded a minor increase to $489,000. Similarly, the benchmark value for Condos has rose from $278,600 to $287,300 over a one year time-frame. Townhome prices also saw an increase from $392,500 to $401,500 over the same period.

December in the Greater Victoria Area ended with a total of seven waterfront sales of MLS listed property. These sales occurred in Sidney, North Saanich, Sooke and Esquimalt. There were 14 properties sold between the one and two million dollar price points. Addi-tionally, a downtown Penthouse apartment sold for over three million!

With our area-wide absorption rate dipping down below six months of inventory for the first time in over four years, we are well and truly experiencing a balanced market. We hope to see this trend continue into the new year.

7.1

7.9 8.0

8.79.0

10.4

9.99.5

9.9

9.4

8.8

8.38.5

9.19.4

9.8 10.0

9.48.9

8.89.2

9.59.7 9.6

10.6

11.511.9

11.2

10.5

9.3

8.4

7.87.7 7.5 7.5 7.4

7.9

9.09.3

9.69.2

8.3

7.4

6.6 6.56.1 6.0

5.8

2

3

4

5

6

7

8

9

10

11

12

January

February

March

April

May

June

July

August

Septem

ber

October

Novem

ber

Decem

ber

Month

s of

Invento

ryAbsorption Rate

Greater Victoria Area - (2011-2014)

2011 2012 2013 2014

A YEAR OF CONSUMER CONFIDENCE

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2011 339 488 622 574 572 618 523 542 458 483 482 339

2012 372 497 570 586 659 637 523 462 419 373 366 283

2013 294 394 483 615 659 664 583 540 487 512 412 355

2014 342 412 575 664 714 680 681 609 565 602 465 389

200

300

400

500

600

700

800

Num

ber

of

Sale

s

Monthly Sales ComparisonGreater Victoria - (2011-2014)

CAPITAL REGION SALES

An absorption rate is the rate at which avail-able homes are in a specific market area during a given period of time.

This is calculated by dividing the average number of sales into the number of homes currently on the market.

The rate shows how many months it will take to exhaust the supply of homes. A value be-tween 5 and 6 months is considered to indi-cate a healthy, balanced market. A value over 6 is considered a Buyers market, and values under 6 are generally a Sellers market.

389

MO

NT

HS

OF

IN

VE

NT

OR

Y

6

5

4

3

7

8

BALANCED

BUYERMARKET

SELLERMARKET

HOW TO INTERPRET ABSORPTION RATES

7.1

7.9 8.0

8.79.0

10.4

9.99.5

9.9

9.4

8.8

8.38.5

9.19.4

9.8 10.0

9.48.9

8.89.2

9.59.7 9.6

10.6

11.511.9

11.2

10.5

9.3

8.4

7.87.7 7.5 7.5 7.4

7.9

9.09.3

9.69.2

8.3

7.4

6.6 6.56.1 6.0

5.8

2

3

4

5

6

7

8

9

10

11

12

January

February

March

April

May

June

July

August

Septem

ber

October

Novem

ber

Decem

berM

onth

s of

Invento

ryAbsorption Rate

Greater Victoria Area - (2011-2014)

2011 2012 2013 2014

1.88

3.50

1.98 2.00

2.93

1.59

2.21

3.04

4.43

1.60

11.14

4.05 3.96

8.63

7.25

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Month

s of

Invento

ryAbsorption Rates - Single Family Detached

December 2014

4.264.04

4.25

7.64

6.92

4.58

6.15

2.702.93

10.91

5.66

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Month

s of

Invento

ryAbsorption Rates - Condominiums

December 201463.00

2.19

3.60

2.00

2.80

2.00 2.13

3.43

2.082.40

3.10

6.00

4.45

8.14

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Month

s of

Invento

ryAbsorption Rates - Townhouses

December 2014

6.40

3.18

0.00

8.31

6.55

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Month

s of

Invento

ryAbsorption Rates - Manufactured Homes

December 2014

0

1

1

2

2

3

3

4

4

54.43

n/a

2.40

n/a

1.60

2.93 3.10

0.00

3.04

2.70

2.08

3.18

Absorption Rates - Saanich PeninsulaDecember 2014

North Saanich Sidney Central Saanich

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2011 339 488 622 574 572 618 523 542 458 483 482 339

2012 372 497 570 586 659 637 523 462 419 373 366 283

2013 294 394 483 615 659 664 583 540 487 512 412 355

2014 342 412 575 664 714 680 681 609 565 602 465 389

200

300

400

500

600

700

800

Num

ber

of

Sale

sMonthly Sales Comparison

Greater Victoria - (2011-2014)

0

1000

2000

3000

4000

5000

Active Listings / Number of SalesGreater Victoria - (last 24 months)

Active Listings Number of Sales

SINGLE FAMILY DETACHED

North Saanich Central Saanich SidneyListed Sold Listed Sold Listed Sold

$0 – $499K 5 1 2 4 6 5

$500K – $799K 24 5 16 6 6 1

$800K – $999K 6 1 6 1 2 0

$1000K – $1999K 19 1 9 0 2 1

$2000K + 11 0 7 0 0 0

CONDOS & TOWNHOMES

PENINSULA Listed Sold

$0 – $199K 6 0

$200K – $399K 31 10

$400K – $799K 17 10

$800K – $999K 1 2

$1000K + 1 0

MANUFACTURED

PENINSULA Listed Sold

$0 – $99K 1 0

$100K – $149K 4 2

$150K – $199K 7 0

$200K – $249K 0 1

$250K + 1 0

SFD WATERFRONT

PENINSULA Listed Sold

$0 – $999K 5 1

$1000K – $1499K 6 1

$1500K – $1999K 5 0

$2000K – $2999K 2 0

$3000K + 12 0

LOTS & LAND

PENINSULA Listed Sold

$0 – $299K 7 0

$300K – $499K 16 0

$500K – $699K 4 1

$700K – $999K 6 0

$1000K + 12 0

“Listed” : The number of MLS listings presently on the market at the end of the month indicated.“Sold” : The number of MLS listings with unconditional offers in the month indicated.

PENINSULAINVENTORY VS SALES

(By Price Range) - December 2014