The following is an update from Glynis MacLeod PREC* of the MacLeod Group.
All markets take a while to digest news, and the real estate market is no different. Last week’s end-of-month statistics from the Victoria Real Estate Board showed a 15.2% drop in sales compared to October 2022. Higher interest rates have put buyers on the sideline while they take stock.
On October 25th, the Bank of Canada (BoC) decided to hold its interest rates steady. This is the second straight pause, after 10 straight hikes.
Yesterday, the BoC released the result of the third-quarter survey of 27 Canadian financial market participants. The resulting median forecast from the survey’s respondents sees the Bank holding its benchmark rate steady at 5.0% until April 2024, at which point the market participants are expecting the first rate cut of 25 basis points.
Determined to meet their goal of 130,000 new homes in 10 years, the provincial government made two major announcements this past month.
Firstly, after May 24, British Columbians will legally only be able to rent out a primary residence with one additional secondary suite, as a short-term rental. All condos purchased in buildings which are permitted to have short-term rentals by the municipal government, no longer qualify. This has resulted in a flurry of condo listings, especially small and micro units which were used for this purpose.
Communities with populations of 10,000 or less are exempt from the legislation but can decide to opt into the new rules.
Secondly, last week the Provincial Government announced Bill 44, Housing Statutes (Residential Development) Amendment Act which abolishes the single-family zone. The bill overrides single-family zoning to allow one secondary suite or laneway home in every community over 5,000. It requires local bylaws to allow up to four units, and up to six if the lot is big enough and near rapid transit or bus stops. Size, set-back and other details have not been published.
In addition, the bill eliminates the need for developers to host public hearings except in specific instances. If a project fits the community plan and the development is at least half residential, no hearings will be needed. Another section of this bill eliminates parking requirements.
The effect is to pre-zone much of urban B.C. for a multi-unit surge 20 years into the future.
Initially proposed in April, Housing Minister Ravi Kahlon said it would provide a policy manual by December for the roughly 85 municipalities affected by the changes to be implemented by the end of June 2024.
On another note, Victoria continues to be noticed with Butchart Gardens being featured on a recent episode of Jeopardy. Clue: A National Historic Site of Canada, these gardens on Vancouver Island include the beautiful Sunken Garden seen here”, and showed a photo of the attraction.
This year, the Greater Victoria Harbour Authority is celebrating a record 970,000 cruise ship passengers and 370,000 crew on 326 ships this year. Last year brought 715,000 passengers on 329 cruise ship visits.
Finally, Air Canada’s Enroute magazine has named another Victoria eatery to the list of top 10 restaurants across Canada. Congratulations to Marilena Café & Raw Bar for placing third! We look forward to trying it out.