A lack of housing supply and an eruption in demand has Greater Victoria's real estate market continuing to set the pace for the economy. The benchmark price for a single family home in the region's four core municipalities was $996,500 for April. That's up 2.9% from March and 12.6% higher from April 2020's benchmark price of $884,600.
"We've seen an imbalance in our market for a quite a few months," Victoria Real Estate Board President David Langlois said in a news release. "Our market is based on supply and demand and there is a disconnect right now with record low supply and high demand. Unfortunately, our housing supply is not as elastic as market demand is."
Langlois says markets such as Greater Victoria can "erupt quickly," and outpace the time it takes to build new homes.
"These realities make it hard to bring our market into balance. Efforts by government to dampen demand by making home ownership more expensive through taxes and borrowing limitations do not bring balance. Municipal governments adding costs and time delays to new developments do not bring balance. A commitment to developing our communities over the long term may."