Victoria faces property shortage as newcomers move in for lifestyle change

The Canadian Press
Published on January 9, 2017

VICTORIA — Expectations that an influx of homebuyers into Victoria would consist mostly of foreigners looking to escape Metro Vancouver's 15-per-cent buyers' tax went unfounded as the head of a Vancouver Island real estate board says purchasers are instead pouring in from other areas of the country.

Few in Victoria are forecasting a repeat of last-year's record-smashing property sales and constant bidding wars, but housing experts say prices will rise in a market with too few available homes.

Mike Nugent, outgoing president of the Victoria Real Estate Board, says most property developments under construction are already sold out and the trend of homes selling at higher than asking prices is expected to continue.

He says that while Vancouver has seen a drop in housing prices, partly due to the 15-per-cent foreign buyers tax on Metro Vancouver properties, Victoria real estate values are expected to keep inching upwards.

Nugent says the major real estate issue in Victoria currently is a shortage of supply.

He says people are looking for a lifestyle change when they move to the area.

The Canadian Press