A total of 775 properties sold in the Victoria Real Estate Board region this May, 1.8 per cent more than the 761 properties sold in May 2022 and a 21.7 per cent increase from April 2023. Sales of condominiums were down 0.8 per cent from May 2022 with 248 units sold. Sales of single family homes increased 8.7 per cent from May 2022 with 399 sold.

“The month of May marks the highest number of sales we’ve seen since April of last year,” said Victoria Real Estate Board Chair Graden Sol. “While we haven’t seen the number of total sales we would expect in a spring market, the month of May marks the fourth consecutive month with sales higher than the month previous. With momentum building, there’s an indication of consumer optimism in the market heading into June. However, if the ongoing lack of homes for sale persists and inventory is not added, we risk a return to an overheated market with pressure on pricing.” 

There were 2,189 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of May 2023, an increase of 1.8 per cent compared to the previous month of April and a 21.7 per cent increase from the 1,776 active listings for sale at the end of May 2022.

“The return of consumer confidence we indicated last month appears to be staying strong,” adds Sol. “The slight uptick in inventory means there is more selection, though of course on well-priced properties buyers need to come prepared to move at pace with the help of their REALTOR® to ensure they are well positioned in the current market.”

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in May 2022 was $1,424,000. The benchmark value for the same home in May 2023 decreased by 8.9 per cent to $1,297,600, which is up from April’s value of $1,295,800. The MLS® HPI benchmark value for a condominium in the Victoria Core area in May 2022 was $619,500, while the benchmark value for the same condominium in May 2023 decreased by 8.1 per cent to $569,300, which is up from the April value of $564,000.

In British Columbia, there is a significant amount of legislation that applies to and guides the operations of strata corporations, the most significant of which is the Strata Property Act.

While most stratas work hard to comply with all legal requirements, there are some that neglect to follow the rules, even when issues are brought to their attention.

So this begs the question “What can owners do when their strata corporation is not following the law and takes no action to address non-compliance or mistakes, when it becomes aware of them?”

With the advent of the Civil Resolutions Tribunal (CRT) for strata disputes in 2016, it became more accessible for strata owners and strata corporations to address conflicts and pursue legal judgements without the need for lawyers or the BC Supreme Court.

The CRT is an online dispute resolution tribunal tasked with resolving strata corporation disputes, including but not limited to:

• non-payment of monthly strata fees or fines

• unfair actions by the strata corporation

• unfair, arbitrary or non-enforcement of strata bylaws

• issues of financial responsibility for repairs

• irregularities in the conduct of meetings, voting, minutes or other matters

• interpretation of the legislation, regulations or bylaws

• issues regarding the common property

The Depreciation Report

A depreciation report provides important insights for buyers looking to buy into a strata corporation. It not only speaks about the current condition of the physical components (as long as the report is recent), but also the financial state of the strata corporation. Some of the most important information in a depreciation report can be found in the following two sections.

• The evaluation of the strata’s physical components

• The financial analysis and forecasting.

Omitted Components

One issue we often come across when reviewing depreciation reports is omitted components. Oftentimes this is due to the strata council directing the author of the report to omit certain items, which is a significant concern because excluding some items from the report leads to an underreporting of future capital expenses.

In simple terms, by excluding some items from the report, it makes it appear as though the strata will have less to spend on future capital projects, than in reality. If not caught, this practice can be very misleading to potential buyers.

Copyright (C) 2023 Condo Clear Services Inc.. All rights reserved.

Buying a house can be an exciting, yet daunting experience. One of the most crucial steps in the home buying process is making an offer on a house. If you're a prospective homebuyer in Victoria, BC, you may be wondering how to make an offer on a house. In this blog, we'll take you through the process step-by-step so that you can confidently make an offer on your dream home.

1. Determine your budget

Before you begin the process of making an offer on a house, it's important to determine your budget. Consider factors such as your income, expenses, and the amount of money you're able to put towards a down payment. It's important to be realistic about what you can afford and what you're comfortable spending.

2. Get pre-approved for a mortgage

Getting pre-approved for a mortgage can give you a better idea of what you can afford and can also make your offer more attractive to sellers. This process involves providing your lender with information about your income, assets, and credit history. Once you're pre-approved, you'll receive a letter that you can use to show sellers that you're a serious buyer.

3. Find the right house

Once you've determined your budget and gotten pre-approved for a mortgage, it's time to start looking for houses. Work with a real estate agent to find homes in Victoria, BC that meet your needs and budget. Once you find the right house, it's time to make an offer.

4. Make an offer

Making an offer involves submitting a written offer to the seller that includes the price you're willing to pay, any contingencies (such as financing or inspection), and the closing date. Work with your real estate agent to determine a fair price to offer based on the current market conditions and the condition of the house.

5. Negotiate

After you've submitted your offer, the seller may respond with a counteroffer. This is an opportunity for you to negotiate and potentially come to an agreement that works for both parties. Work with your real estate agent to navigate the negotiation process and come to a final agreement.

6. Complete the sale

Once you've agreed on a price and all contingencies have been satisfied, it's time to complete the sale. This involves signing a purchase agreement, making a deposit, and preparing for closing. Work with your real estate agent to ensure that all necessary paperwork is completed and that the closing goes smoothly.

Making an offer on a house can be a complex process, but with the right guidance and preparation, you can confidently navigate the process and find your dream home in Victoria, BC.

Not enough growth in inventory means spring market sales slow

A total of 637 properties sold in the Victoria Real Estate Board region this April, 22.7 per cent fewer than the 824 properties sold in April 2022 but an 8 per cent increase from March 2023. Sales of condominiums were down 21.8 per cent from April 2022 with 205 units sold. Sales of single family homes decreased 19.4 per cent from April 2022 with 325 sold.

“Sales numbers for this April are more moderate than the higher levels we’ve seen in recent years,” said Victoria Real Estate Board Chair Graden Sol. “We are in a familiar market pattern, where the majority of sales for the year occur in the spring. While we’ve seen an increase in sales over the previous month, we’re not expecting a return to record setting activity. Our inventory levels continue to be very low and new properties are slow to come onto market. More inventory is needed to balance the supply against spring demand. The good news is that prices have stabilized for now. If listings do not pick up over this season, there is a risk that the price stabilization could turn and we could see prices increase.”

There were 2,043 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of April 2023, an increase of 3.7 per cent compared to the previous month of March and an 49.7 per cent increase from the 1,365 active listings for sale at the end of April 2022.

"Though we are seeing multiple offers in our market, these situations are dependent on a number of factors including price, competition, area, condition of home, etc.,” adds Sol. “This means sellers should seek clarity on what to expect during their transaction as this spring market continues to evolve. Overall, consumer confidence in the market has returned. Accurately priced homes are selling quickly and close to list price. Your REALTOR® can help you understand the pulse of the market should you be contemplating buying or selling this spring.”

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in April 2022 was $1,424,900. The benchmark value for the same home in April 2023 decreased by 11.3 per cent to $1,264,200, which is up from March’s value of $1,236,200. The MLS® HPI benchmark value for a condominium in the Victoria Core area in April 2022 was $630,200, while the benchmark value for the same condominium in April 2023 decreased by 10.3 per cent to $565,000, which is up from the March value of $560,300.

While this list is by no means exhaustive, some things to keep an eye out for when reviewing a strata’s year end financials includes:

• How the strata has ended the past two fiscal years.

  • Significant deficits may be a result of the strata not budgeting properly, which could result in significant future strata fee increases.

• Make sure the strata is paying off its past year deficit properly.

  • Strata corporations are required to pay off any previous fiscal year deficit in the current fiscal year. If the strata had a deficit in its last fiscal year, you should typically see:

    • A budget line item showing the strata’s previous year deficit in the current fiscal year budget, or

    • A contingency reserve fund (CRF) or special levy resolution, approving funds to pay off the previous year deficit.

Financial documents can provide a lot of valuable information. If you’ve read our previous email titled The Strata Financials You Should Be Reviewing, you’ll know why it’s important to review a strata’s financial documents, and you’ll also have a list of the strata financials we recommend you obtain and review.

The Strata Budgets

This week, we’re going over some of the items you should watch out for in the strata’s budgets. When it comes to budgets, we recommend you (at the very least) obtain the current and previous fiscal year budgets. This will enable you to analyze various financial metrics and other related information.

While this list is by no means exhaustive, some items to look out for in the strata’s budgets include:

• The strata’s fiscal year.

  • Not all stratas have a January-December fiscal year.

  • Check that the strata is holding its annual general meetings on time, which should be within two months of the strata’s fiscal year end.

• Check the correct strata fees for the strata lot you are evaluating.

  • You’ll be surprised how many stratas are not calculating strata fees correctly, or noting the correct amount on the Form B. See our email titled Check the Strata Fees, for more info on calculating strata fees.

• Check how much strata fees have increased over the past two years.

  • As of the date of this email and based on the last 808 strata reviews we have completed, strata fees have been increasing, on average, 8.44% year-over-year, in BC.

• Check how much each budget line item has increased over the past two years.

  • Out of the norm increases (such as significant increases in insurance premiums) could signal possible issues within the strata.

• Check the strata’s current contributions towards the contingency reserve fund (CRF).

  • Make sure the strata is meeting its minimum legislated CRF contributions requirement.

• Check for surpluses carried forward in the operating budget.

  • Some stratas use past year surpluses to pad their current budget. See our email titled Watch Out For Stratas “Padding Their Budgets” for more info.

Early spring market reflects consumer confidence and growing demand

A total of 590 properties sold in the Victoria Real Estate Board region this March, 29.2 per cent fewer than the 833 properties sold in March 2022 but a 28.3 per cent increase from February 2023. Sales of condominiums were down 29.4 per cent from March 2022 with 197 units sold. Sales of single family homes decreased 31.8 per cent from March 2022 with 281 sold.

“We’ve seen our sales numbers this month almost double from January,” said Victoria Real Estate Board Chair Graden Sol. “As we move further into spring, we expect that the return to confidence we’ve seen in the market will continue. What we can’t predict is what the overall impact on pricing will be if we continue to see quite low inventory across our community. Some pockets of our market are busier than others - by working with your REALTOR® you can better understand the market you are in.”

There were 1,970 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of March 2023, an increase of 8.9 per cent compared to the previous month of February and an 85.3 per cent increase from the 1,063 active listings for sale at the end of March 2022.

“Demand is recovering,” adds Sol. “Compared to the end of 2022, prices have firmed up and interest rates have become normalized. Consumers are more active, and we are seeing quite a few multiple offers on well-priced properties. Inventory continues to trend lower than long term averages. As our spring market continues to strengthen, we may start to experience some upward pressure on pricing again. We have been talking about the need for supply to help moderate pricing for a long time. Premier Eby’s announcement this week about the provincial government’s Homes for People action plan reflects an increasing awareness of the importance of supply. We need all levels of government to continue to focus on solving our market housing crunch, so we do not return to the high-pressure markets of the recent past.”

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in March 2022 was $1,387,200. The benchmark value for the same home in March 2023 decreased by 10.9 per cent to $1,236,200, down from February’s value of $1,247,200. The MLS® HPI benchmark value for a condominium in the Victoria Core area in March 2022 was $616,400, while the benchmark value for the same condominium in March 2023 decreased by 9.1 per cent to $560,300, down from the February value of $568,200.

Strata Tip of the Week: Information Certificate (Form B) Modifications (as of April 1, 2023)

A buyer is entitled to get a current and complete Form B: Information Certificate under the Strata Property Act. This document, which the strata company or the strata manager has issued on the strata's behalf, provides the following information:

a few details on the strata corporation in its entirety, and

a few details that are particular to the strata lot.

Strata companies, and by extension their strata managers, are required to utilise the most recent version of the Form B when delivering one to a prospective buyer or a real estate licensee.

For information on why we advise the Form B, see our prior email titled "Make Sure the From B: Information Certificate is Current."

The Strata Financials You Should Be Reviewing

When it comes to reviewing a strata’s financials, the first step is to get copies of all the relevant financial documents. To get a good sense of the strata’s financial health over the past two years, we recommend you obtain:

• The current fiscal year budget

• The previous fiscal year budget

• Year end financials (for the last two fiscal years), and

• The most recent monthly financials (ideally within two months old)

  • Most stratas, especially if professionally managed, will have monthly financial statement. These will most often include the:

    • Balance Sheet, and

    • Income Statement

Reviewing these financial documents will allow you to analyze the strata’s past and current financial positions, as well as changes in various financial metrics, which can provide valuable information about a strata’s financial health.

Winter real estate market wraps with improved consumer confidence and more stable pricing

A total of 460 properties sold in the Victoria Real Estate Board region this February, 35.9 per cent fewer than the 718 properties sold in February 2022 but a 65.5 per cent increase from January 2023. Sales of condominiums were down 39.7 per cent from February 2022 with 161 units sold. Sales of single family homes decreased 28.8 per cent from February 2022 with 220 sold.

“Last month we talked about the optimism building in the local market that our REALTORS® saw, and now we can see it in the market statistics,” said Victoria Real Estate Board Chair Graden Sol. “We can confirm the return of buyer confidence by the increase in sales through the late winter. The market is seeing some positive headwinds as we move into springtime, which is traditionally the busiest market for home sales. Inventory levels are starting to increase, a welcome trend when compared to the record lows of last year. We’re also seeing a stabilization at some price points and properties that are priced in accordance with current market conditions are selling at a good pace.”

There were 1,809 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of February 2023, an increase of 4 per cent compared to the previous month of January and a 113.1 per cent increase from the 849 active listings for sale at the end of February 2022.

“The market today is different than we have seen in recent years,” adds Sol. “There’s plenty of demand from buyers, and we are still low in inventory, but there are opportunities in a less pressurized environment for consumers to get into a new home. Most buyers will find they have more time to view homes, make decisions and do their due diligence in this somewhat more relaxed market. Of course, we are heading into a new season which is typically very active. The statistics in this report reflect what happened last month. Prudent buyers and sellers will seek the knowledge of their Realtor to determine the up-to-the-minute conditions and how to best navigate the market.”

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in February 2022 was $1,321,400. The benchmark value in February 2023 decreased by 5.6 per cent to $1,247,200, down from January’s value of $1,251,100. The MLS® HPI benchmark value for a condominium in the Victoria Core area in February 2022 was $580,900, while the benchmark value in February 2023 decreased by 2.2 per cent to $568,200, down from the January value of $578,300.

Strata Tip of the Week - Understanding Parking and Storage Designations

This week, we’re revisiting the different ways that parking and storage can be designated within a strata corporation.

1. So, why are Parking and Storage designations important?

It’s important to understand and be able to describe these concepts to consumers, as the rights they have to parking and storage can often impact their purchase decisions.

While buildings that were built in the 90s or earlier often came with more parking stalls and storage lockers than units, today we’re seeing many new strata developments that have less parking stalls and storage lockers than units, making these components that much more important and valuable.

2. Where can I find information about the Parking and Storage?

You can find information about a strata lot’s parking and storage on the Form B. It’s important to also verify this information on the Strata Plan or Parking Plan filed with the Land Title Office, as we’ve come across many Form Bs that provided incorrect information.

3. What are the different ways Parking and Storage can be designated?

When it comes to parking stalls and storage lockers, there are 5 ways you’ll typically see them designated:

• It forms part of the Strata Lot

• Common Property (the strata council grants permission to an owner to use a spot on a yearly basis, and although unlikely, can change or take the spot away)

• Limited Common Property (the owner has exclusive use of a specific spot, and the designation can only be changed if the owners pass a unanimous resolution)

• Limited Common Property for a Specific Section (found in sectioned stratas; the residential executive grants permission to use a spot on a yearly basis and (like with a common property spot) can change or take the spot away)

• Long Term Lease (the spot is subject to a long term lease associated with the strata lot; a copy of the lease should be obtained from the sellers, as the strata corporation does not usually retain copies)

Long term parking and/or storage leases can have significant implications for both buyers and sellers. Here’s an article from the BCFSA which provides a good example and cautionary note.

That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know

Make Sure to Check that the Strata Fees are Being Calculated Correctly

1. The info you’ll need: The total annual contributions for the current fiscal year. (found in the budget, which must be provided with the Form B) The Form V - Schedule of Unit Entitlement. (filed with the Land Title Office, or if the strata was built pre-2000, this will be part of the Strata Plan) 2. The formula you’ll need:

The Difference Between a Strata Lot, Common Property and Limited Common Property

One of the questions for our Strata Challenge Quiz at the 2023 Victoria Real Estate Board tradeshow was “What is the difference between a strata lot, common property and limited common property”. So this week, we thought we’d go over what each concept means.

Land registered at the Land Title Office can be subdivided in different ways. One of these is a “strata” subdivision, which is different than the “traditional” subdivision of land. A “strata development” allows the subdivision of a building, or sometimes land, into:

• Strata Lots - Which are separate parts for individual ownership, and

• Common Property - The rest of the property (and assets) shared and owned collectively by all the strata lot owners.

A slow start to the year may not foretell the future for the Victoria housing market 

A total of 278 properties sold in the Victoria Real Estate Board region this January, 41.4 per cent fewer than the 474 properties sold in January 2022 and a 13.1 per cent decrease from December 2022. Sales of condominiums were down 46.3 per cent from January 2022 with 101 units sold. Sales of single family homes decreased 33 per cent from January 2022 with 120 sold.

“If you’re looking at the statistics, this January was one of the slowest we’ve seen on record,” says 2023 Victoria Real Estate Board Chair Graden Sol. “However, we did see a mid-month surge in activity as buyers seemed to regain confidence after the rapid interest rate increases of last year. It may be that consumers are moving past the market shock of the rate increases and economic uncertainty and that our market is regaining its equilibrium. What the data doesn’t show is the optimism that many of our REALTOR® members are noting from their buyers and sellers, who remain active viewing homes and making offers. Interest rates, continued low inventory and the greater economic situation in our area will determine what our early spring market will look like.”

There were 1,739 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of January 2023, an increase of 3 per cent compared to the previous month of December and a 133.7 per cent increase from the 744 active listings for sale at the end of January 2022. 

“Despite the slower start to the market in January, and our constrained inventory levels, some consumers still found themselves in multiple offer situations, particularly on the types of properties that represent the crucial missing middle segment of our market. The Victoria City Council voting to move forward with their missing middle housing program is a great step in the right direction when we are considering how low inventory has impacted the attainability of housing in the CRD,” adds Sol. “But this is one step in a marathon of work to be done to increase housing opportunities to meet our community’s short- and long-term needs. Each municipality must keep their focus on adding gentle density where they can so that we do not face another swift increase in values when our market demand increases again.”

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in January 2022 was $1,296,600. The benchmark value for the same home in January 2023 decreased by 3.5 per cent to $1,251,100, down from December’s value of $1,283,600. The MLS® HPI benchmark value for a condominium in the Victoria Core area in January 2022 was $561,300, while the benchmark value for the same condominium in January 2023 increased by 3 per cent to $578,300, up from the December value of $574,300.

Review the January 2023 Statistics Package here.

The release and the full statistics package will be posted to the VREB website at www.vreb.org/current-statistics later this afternoon.