TABLE 2: STATISTICAL TRENDS - ALL RESIDENTIAL (Greater Victoria and Other Areas)

QUARTER-TO-QUARTER COMPARISONS

3 Qtr 14 3 Qtr 15 Changerd rd

New Listings 2,919 2,885 -34 Sales 1,796 2,108 +312Avg Sale Price $499,777 $523,132 +$23,355 Median Sale Price $450,000 $465,000 +$15,000Ratio Sales Listings .62 .73 +.11Avg Days to Sell 70 61 -9Sale Price as % of Org List Price 94.4% 96.2% +1.8%Mortgage Rates (Posted 3 yr Fixed BoC) 3.45% 3.39% -0.09%

REAL ESTATE IN BC

BC has long been touted as having the most expensive real estatein Canada. The recently released figures from the Canadian RealEstate Association and the BC Real Estate Association for the firsteight months of 2015 lend support to this notion. The value ofresidential real estate sold in Canada through the Multiple ListingService (MLS®) during this period was $157.6 billion. This was onthe sale of 357,378 units for an average sale price of $440,948.The value of sales in BC over the same period was $44.3 billion(28.1% of the total for Canada) on the sale of 70,617 units (19.8%of the total) for an average sale price of $627,008. From acomparative perspective, Ontario had an average sale price of$465,444 and Alberta $399,306.

Moreover, the gap in prices between BC and the rest of Canada hasgrown in 2015. The dollar value of sales in BC was up +35.9%year-over-year versus +8.0% for the rest of Canada, unit sales wereup +22.4% in BC versus +2.2% for the rest of Canada and theaverage sale price was up +15.4% versus +5.7% for the rest ofCanada. (BC added nearly $45,000 to the average sale price inCanada).

However, there is considerable variation across the province interms of average sale prices, ranging from a low of $248,558 inPowell River to a high of $891,408 in Greater Vancouver. Withsales totalling $26.3 billion, Greater Vancouver had 59.4% of thetotal dollar value in BC, but only 41.7% of the unit sales. If weexclude Greater Vancouver from the calculations, we find that theaverage sale price for the rest of the province is a more modest$516,070, and if we further exclude the Fraser Valley, the averagesale price drops to $374,158. BC’s reputation as having the mostexpensive real estate in Canada is, in no small part, attributable tothe extraordinary influence of Vancouver and its suburbs.

In summary, it seems like we have two types of real estate marketsin this country at this point in time. One is centred on the largemetropolitan markets and their suburbs that have high prices andare experiencing strong price appreciation, namely, GreaterVancouver and Metropolitan Toronto. (In fact, taken together, Vancouver and Toronto add more than $100,000 to theaverage sale price of a residential property in Canada). The other is the rest of the country where both prices and pricegrowth are more modest in nature.

REAL ESTATE IN VICTORIA...Keeping You Informed Fall 2015

VICTORIA SOLIDLY IN A SELLER’S MARKET

TABLE 1: REAL ESTATE IN BC WITH COMPARISONS January to August 2015

Dollar Units AverageBoards Value* Sold Sale Price

Gr Vancouver $26,296.5 29,500 $891,408Fraser Valley $7,694.6 13,625 $564,739Victoria $2,881.2 5,542 $519,875Okanagan-Mainline $2,297.0 5,638 $407,410Vancouver Island $1,971.6 5,810 $339,350BC Northern $785.1 2,957 $265,498Chilliwack $690.7 2,101 $328,769Kamloops $590.4 1,824 $323,657Kootenay $474.5 1,702 $278,777South Okanagan $473.6 1,450 $326,599Northern Lights $62.7 228 $275,075Powell River $59.7 240 $248,558

British Columbia $44,277.5 70,617 $627,008Canada $157,585.1 357,378 $440,948Canada (excluding $113,307.6 286,761 $395,129BC)* in millions

TABLE 3 REAL ESTATE ACTIVITY - Greater VictoriaOctober 2014 to September 2015

Single Family Dwellings

District* Sales Ratio Avg. Sale Price % Chg** Victoria/VW 500 .73 $622,911 +1.5Oak Bay 299 .76 $982,458 +9.5Esquimalt 118 .78 $483,564 +0.3View Royal 96 .64 $556,972 +5.5Saanich East 854 .73 $681,680 +6.7Saanich West 366 .67 $545,712 -0.5Central Saanich 212 .66 $616,860 -1.0North Saanich 183 .73 $705,089 +8.0 Sidney 150 .71 $496,393 +8.5Highlands 25 .37 $647,718 +8.1Colwood 219 .62 $515,737 +4.9 Langford 576 .62 $496,276 +3.4Metchosin 40 .47 $696,446 +11.3Sooke 290 .61 $390,195 +1.1Waterfront 155 .56 $1,279,417 -7.0Totals 4,083 .71 $633,563 +3.7Gulf Islands 269 .58 $586,140 +16.5Malahat & Area 288 .63 $500,253 +13.4*District Avg. Sales Prices exclude sales of “Waterfront”

Condominiums 1,989 .61 $329,832 +3.8Townhouses 792 .67 $425,281 +1.4 ** Percentage Change over period Oct 2013 to Sep 2014

THE VICTORIA MARKET

After languishing for nearly five years, 2015 may turn out to be apivotal year for real estate in Victoria. Virtually all the marketindicators are showing signs of increasing strength. On thesupply side, the number of listings decreased slightly from thesame period last year. On the demand side, there was asignificant increase in the number of sales. The ratio of sales-to-listings (a measure of market strength) was also up significantly.Sale prices were higher and continue on an upward trend.Properties spent less time on the market before they sold. Thereare anecdotal reports of many multiple offer situations. Indeed,an analysis reveals that some 17% of single family dwellings soldabove their list price in the 3 Qtr of 2015. Sales of residentialrd

properties (i.e., all types of housing excluding lots/acreage andcommercial) through the Victoria Real Estate Board’s (VREB’s)MLS® totalled 2,108 in the 3 Qtr of 2015, up +17% from 1,796rd

sales in the 3 Qtr of 2014. The number of new listings wasrd

2,885, down slightly from 2,919 in the 3 Qtr of 2014. The sales-rd

to-new-listings ratio was .73 in the 3 Qtr of 2015, up from .62 ard

year ago and up significantly from .51 two years ago. Finally,sale prices were higher. The average sale price of aresidential property in Greater Victoria and other areas was$523,132 in the 3 Qtr of 2015, up +4.7% from $499,777 in therd

3 Qtr of 2014. The median sale price was $465,000, up fromrd

$450,000 last year. The figure of $523,132 compares to averagesale prices of $890,199 in Vancouver, $622,345 in Toronto,$562,622 in the Fraser Valley and $457,713 in Calgary.

Table 3 summarizes real estate activity over the past twelve

months by District and by housing category and shows the

percentage change in average sale prices year-over-year.

REAL ESTATE ACTIVITY 3 QTR 2015RD

Sales of SFDs in greater Victoria in the 3 Qtr of 2015 totalledrd

1,118, up +16.7% from 958 sales in the 3 Qtr of 2014. Therd

average sale price of SFDs in the 3 Qtr of 2015 wasrd

$661,982, up +7.8% from an average of $614,133 in the 3 Qtr of 2014. Moreover, the median sale price was $570,000,rd

compared to $550,000 in the 3 Qtr of 2014. (Note: there were fifteen sales above $2 million, which pushed up sales prices).rd

Prices appear to have begun an upward trend with quarter-over-quarter increases over the past three quarters. SFDs thatsold in the 3 Qtr of 2015 were on the market for an average of 46 days, compared to 62 days last year. The sales-to-listingsrd

ratio was .77 in the 3 Qtr of 2015, compared to .63 last year.rd

Condominium sales also strengthened in the 3 Qtr of 2015 with sales of 572, up +30.3% from 439 sales in the 3 Qtr ofrd rd

2014. The average sale price for a condo was $322,326 in the 3 Qtr of 2015, down slightly from $323,909 in the 3rd rd

Qtr of 2014. The median sale price was $277,000, up from $270,000 last year. Prices, which had shown an upward trendsince the 4 Qtr of 2012, have levelled off in the past year. Condos took an average of 64 days to sell in the 3 Qtr of 2015,th rd

down from 76 days last year. The sales-to-listings ratio was .75, compared to .57 last year.

There were 221 townhouse sales in the 3 Qtr of 2015, up +21% from 182 sales in the 3 Qtr of 2014. The average sellingrd rd

price in the 3 Qtr of 2015 was $433,493, up +2.2% from $424,008 in the 3 Qtr of 2014. The median sale price wasrd rd

$405,000, up slightly from $400,000 last year. Townhouses took an average of 54 days to sell in the 3 Qtr of 2015,rd

compared to 63 days last year. The sales-to-listings ratio was .74, up from .64 last year.

Real Estate in Victoria ...Keeping You Informed: I provide this newsletter to clients, customers and friends to help them keep informed of developmentsin the real estate market in the Victoria area. If you do not want to receive this newsletter in the future, please let me know. It is not intended to solicit orinterfere with existing listings or Agency relationships. The information contained herein is based on sources which are believed to be reliable, but it is notguaranteed. The content of this newsletter is copyright©. The data and information outlined herein was derived from a number of sources including: theVREB, the BCREA and the CREA. The Publisher is responsible for the analysis of the data and any opinions expressed herein.

2 REAL ESTATE IN VICTORIA...Keeping You Informed Fall 2015