Greater Victoria's housing prices have more than doubled in the past decade, reflecting a trend in major markets across Canada, according to a new report.

The average price for all types of housing in the capital region climbed by 123 per cent, to $504,561 in 2010 from $225,731 in 2000, said the Housing Evolution Report released Monday by Re/Max.

Greater Victoria placed ninth among rates of increases calculated for 16 real estate markets. Price increases range from a high of 173 per cent in Regina and 165 per cent in Edmonton to 68 per cent in London-St. Thomas and 77 per cent in Greater Vancouver.

Nationally, the average price of a home rose to $339,030 last year, up from $163,951 in 2000.

Greater Victoria's climb has not been steady, as real estate markets cooled when the 2008 global financial crisis put the brakes on a red-hot housing market.

"My sense of it is that we are stabilizing," said Geoff McLean, an agent with Re/Max Camosun. "People have been waiting for the bottom of the market. We are probably there or just past it."

The Re/Max report attributed the 10-year price boost to supply, demand and overall economic performance, as well as new housing construction, renovations and infill.

Within the capital region, the average price has gone up for both single-family houses and condominiums, the report said.

About 39 per cent of Greater Victoria homes were built before 1970, the report said. "Renovation is occurring at a rapid pace as Victorians move to improve the value of their properties through upgrades. Infill continues in trendy core areas of the city such as Fernwood and James Bay, where properties are purchased and rezoned for single-family homes or strata duplexes."

Residential building permit values totalled $4.5 billion from 2000 to 2010, the report said. Of that, 20 per cent have been targeted for renovation.

The report said new condominium projects are springing up "as the cost of owning a single-detached home grows increasingly prohibitive."

Greater Victoria is one of the most expensive markets in the country, as every month several homes sell for more than $1 million. The average price of a single-family home in October was $595,836 and the average for a condominium was $307,329, according to the most recent data from the Victoria Real Estate Board.

Statistics Canada said in a report that between January and the end of September, the total value of residential building permits in Greater Victoria was $342.27 million, down from $365.28 million for the same months in 2010.

The Canada Mortgage and Housing Corp. said in its fall outlook housing starts are predicted to reach 1,700 — including 1,110 multi-family units — this year. That will increase to 1,850, including 1,200 multi-family units, in 2012.

The annual average sales price will be $505,000 next year, the agency said.

Greater Victoria's resale market is moving toward balanced conditions with a slight increase in 2012, the federal agency said. Sales through the Multiple Listing Service are expected to increase seven per cent in 2012, after declining four per cent this year.

Home ownership demand was tempered by a slower-than-expected recovery in full-time employment, CMHC said. This year is expected to produce 5,900 sales, slightly below 2010 numbers. Total sales for next year are predicted to increase to 6,300.

cjwilson@timescolonist.com

Comments

There are no comments for this item yet.