Balanced Market: What's It Going to Take?
As the conversation carried on, we began to talk about the collapse of 2008. The American market dove deep, and the ripples were certainly felt here in Canada. By the end of 2008 in the Greater Victoria condo market, 1,695 condos were sold for an average of $320,428. By the end of 2009, the numbers had rebounded slightly but prices decreased: 2,157 sales with an average price of $311,536. Where are we at now? As of November 30, 2016, 2,777 condos have sold with the benchmark price sitting at $371,300.
Victoria will always be a desirable place to live and will likely always be a middle-class city. We’re a city of government works and a healthy tourism industry. While the tech and arts industries are growing, we’re still a primarily middle-class city with middle-class buying power. The average Victorian simply can’t compete with buyers coming in from Vancouver with out-of-proportion budgets. With that being said, we suspect that prices will plateau, perhaps with a small decrease, as the skyrocketing prices can’t be maintained. At some point, what goes up must come down.