November Market Update.
In November, the Victoria Real Estate Board region saw a total of 394 properties change hands, marking a 2.6% uptick from the 384 properties sold in the same month last year. However, this figure represents a 3.2% decline from the sales recorded in October 2023. Condominium sales experienced an 11.8% dip compared to November 2022, with 120 units sold, while single-family home sales increased by 6% to 193 units from the previous year. Victoria Real Estate Board Chair Graden Sol commented on the market dynamics, noting that a slight relaxation in sales was expected given the current interest rate environment. While sales figures remain below long-term averages, Sol pointed out a positive trend with a 25% increase in listings compared to the previous year, indicating a recovery from the historically low inventory levels. As of the end of November 2023, there were 2,644 active listings on the Victoria Real Estate Board Multiple Listing Service®, reflecting a 4.1% decrease from October but a significant 25.2% rise from November 2022. Sol emphasized the benefits of balanced market conditions, making transitions smoother for buyers and sellers. He highlighted that increased inventory provides more choices for sellers, and buyers can enjoy a more favourable market with additional time and options. Sol encouraged those considering a move in the new year to consult with their preferred REALTOR® now, taking advantage of the balanced market conditions. The Multiple Listing Service® Home Price Index showed that the benchmark value for a single-family home in the Victoria Core increased by 3% from November 2022 to $1,286,400. Similarly, the benchmark value for a condominium in the same area rose by 1.6% to $577,400 compared to the previous year. Despite these increases, both figures were slightly down from those recorded in October 2023.
Higher Density Coming to Transit Hubs
The proposed legislation is focused on expediting the development of homes near transit hubs, aiming to enhance communities by providing easy access to transit, services, and amenities. Ravi Kahlon, the Minister of Housing, emphasizes the positive impact of such developments on individuals and communities, stating that existing regulations hinder progress in many municipalities. The goal is to eliminate barriers and accelerate the creation of transit-oriented communities. As part of the legislative initiative, the government plans to allocate approximately $400 million, outlined in Budget 2023, to produce thousands of housing units within a decade or more. This funding will be utilized to acquire suitable land near transit hubs, transforming it into thriving, connected communities. Rob Fleming, the Minister of Transportation and Infrastructure, underscores the government's commitment to leveraging public lands for building affordable housing in well-connected, livable communities. The legislation, if passed, is expected to remove obstacles and streamline the development of transit-oriented projects that align with the needs of local communities. The current scenario in British Columbia reveals that while some higher-density neighbourhoods have been successfully established around transit hubs, others face challenges such as restrictive zoning bylaws, parking requirements, and delayed development approvals. The proposed legislation aims to address these issues by requiring municipalities to designate Transit Oriented Development Areas (TOD Areas) near transit hubs. Within these designated TOD Areas, municipalities will need to permit housing developments meeting provincial standards for height and density. These standards, categorized by tiers, will be highest at the center of the TOD Area and will vary based on the type of transit hub and the municipality's size, population, and location. The legislation also advocates for removing restrictive parking minimums, allowing parking to be determined based on project-specific needs. The legislation encourages consistency in developing TOD Areas by utilizing standards outlined in the provincial policy manual. Municipalities will retain the authority to require parking for individuals with disabilities, while commercial parking requirements in TOD Areas remain unaffected. Preliminary analysis suggests that the province could witness the creation of approximately 100,000 new units in TOD Areas over the next decade. To support the legislation, a provincial policy manual will be established to aid municipalities in setting site standards and progressing with proposed housing projects. Following the release of regulations and the policy manual in December 2023, lands designated for transit-oriented growth in official community plans will immediately fall under the new minimum allowable density requirements. For other TOD Areas requiring local government designation, municipalities have until June 30, 2024, to complete this process. The legislation aligns with the proposed small-scale, multi-unit housing legislation (SSMU), which aims to increase density near transit stops. However, TOD Areas with higher density will take precedence over SSMU zoning if there is an overlap. This legislation is an integral part of the Homes for People action plan, announced in spring 2023, building on previous housing initiatives since 2017. The plan outlines further actions to expedite housing delivery, fostering vibrant communities across British Columbia. Further info : https://news.gov.bc.ca/releases/2023HOUS0063-001748
New STR rules are coming to BC.
British Columbia has recently introduced new rules for short-term rentals to regulate the market and return homes to the long-term rental market. The new rules apply to all short-term rentals being offered to the public, including rentals listed on Airbnb, VRBO, Expedia, and FlipKey. The number of short-term rentals has expanded rapidly over recent years in B.C. and around the world, and data shows that short-term rentals are diverting thousands of long-term rentals onto the short-term market in B.C., taking away homes people need. The new rules aim to give local governments more robust tools to enforce short-term rental bylaws, return short-term rental units to the long-term rental market, and establish a new Provincial role in the regulation of short-term rentals. Strata corporations can still have strata bylaws that limit or ban short-term rentals and levy fines of up to $1,000 a day. The legislation would force short-term rental platforms to share their data with the province for enforcement and tax purposes. It would limit short-term rentals to within a host’s home, basement suite, or laneway home on their property. Most of the rules will apply to communities with a population of 10,000 or more. Hoteliers have praised the new rules as the "gold standard"..obviously! The dust may take some time to settle this issue, so stay tuned for more.
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