Home buyers moving from VancouverB次元官网网址檚 overheated housing market have upped the number of million dollar home sales in Victoria.

Re/Max RealtyB次元官网网址檚 2016 Spotlight on Luxury report, which reports on trends in the luxury market, reported an unprecedented increase in the sale of homes priced at over $1 million, and the trend appears to be continuing. Million-dollar-plus home sales have increased by 82 per cent, year over year, while condominium properties in the same price bracket increased by 71 per cent.

Ray Blender, general manager of Re/Max Camosun, attributed the increase in luxury property sales to activity in the Vancouver market.

B次元官网网址淧eople in Vancouver suddenly found their homes valued in the several million dollar neighbourhood and theyB次元官网网址檝e cashed in. They arrive in the Victoria market looking to buy a home here, and theyB次元官网网址檙e coming with a lot of money,B次元官网网址� he said. The phenomenon is one of the reasons for the increase in home prices in Victoria, which have jumped 24.1 per cent in the past year. The October 2016 benchmark price for a home in Victoria was pegged at $755,000, up from $608,200 for the same time last year.

Another cause for the rise in prices can be found in the low availability of homes for sale in the Victoria region.

B次元官网网址淲e continue to see low inventory hindering sales in the local market,B次元官网网址� said Mike Nugent, president of the Victoria Real Estate Board. B次元官网网址淥ur numbers are down from the record-setting pace set this summer, [but] the market is still moving quickly and is still very competitive for certain properties.B次元官网网址�

The increase in prices in Vancouver had been, in part, attributed to the purchase of homes by foreign buyers who were speculating on the hot housing market. The provincial government stepped in during the summer and, in an effort to put a damper on run away home prices, slapped an extra 15 per cent property tax for properties on foreign buyers. But the same surcharge has not been applied to Victoria.

Scott Piercy, a real estate agent with Engel and Volkers Vancouver Island, said on the West Shore, Bear Mountain offers the best illustration of how briskly homes in the $1 million range are selling.

B次元官网网址淚tB次元官网网址檚 high in demand,B次元官网网址� he said. B次元官网网址淭he big thing about it for the Greater Victoria area is itB次元官网网址檚 one of the only newer subdivisions where you can get new product all the time.B次元官网网址�

In terms of numbers, homes selling for $1 million or more have gone up by almost four times over 2015, he said, noting that 23 such properties have cracked that price point in 2016, compared to just six last year. B次元官网网址淔or buyers from Vancouver, Calgary and Toronto, itB次元官网网址檚 still a good value.B次元官网网址�

Blender adds that itB次元官网网址檚 not just $1 million property sales increasing in Victoria.

B次元官网网址淲eB次元官网网址檙e seeing an overall rise in price at the most costly homes,B次元官网网址� he said.

B次元官网网址淲e had nine condos and 72 freehold properties sell over the $2 million mark this year and 15 freehold properties sell at over the $3 million mark.B次元官网网址�

The soaring home prices in Victoria may be impacted by new rules introduced by the federal government regarding minimum down payments for homes as buyers requiring mortgage insurance may qualify for significantly smaller mortgages. Blender points out the new rules have no effect on home buyers from Vancouver with enough equity to make a cash purchase.

B次元官网网址� with files by Don Descoteau

editor@goldstreamgazette.com

GREATER VICTORIA MARKET UPDATE 禄 MONTH TO DATE Dec. 5/16 COURTESY VICTORIA REAL ESTATE BOARD

禄 78 / 465 -- NET UNCONDITIONAL SALES / TOTAL, December 2015

禄 85 / 451 -- NEW LISTINGS / TOTAL, December 2015

禄 1,757 / 2,517 -- ACTIVE RESIDENTIAL LISTINGS / TOTAL, December 2015