Vancouver Island has been proclaimed “B.C.’s new housing hot spot” by Central 1 Credit Union, whose economists predict that median home prices on the Island will rise 10% in 2016, 5% in 2017, and 2.5% in 2018.
The red-hot real estate market in the area, particularly Greater Victoria, is driven primarily by condominiums and houses which aren’t classified as “luxury.” However, its prices are still among the most expensive in Canada: Greater Victoria has more than twenty properties priced above $4 million, more than half of which are on the Peninsula, and the highest-priced is in Metchosin and valued at $28.888 million.
According to Brian Yu, a senior economist at Central 1 Credit Union, housing prices throughout the province are expected to increase through 2018 while, simultaneously, the foreign buyer tax may reduce sales by up to 10% through 2017. However, he also believes the market’s strength will be based on low interest rates, a surge of new residents, and economic growth throughout British Columbia.
Sales for existing homes on Vancouver Island could rise by up to 20% this year, and Central 1 anticipates even higher sales through 2018 due to higher employment. This could be especially true in Victoria, which is already benefiting from population growth, strong tourism, and “waves” of property owners coming to the area from metro Vancouver.