Victoria Real Estate Market will remain strong in 2021
- There are now two distinct real estate markets in Metro Victoria. The house market with rising values and the condo market with not much price appreciation.
- Mortgage rates are at historic lows however, higher unemployment largely offsets the benefits of low rates.
- The second wave of COVID-19 is not yet under control. Continued high levels of infection will lead to restrictions and economic fallout.
- Several vaccines show promising results however, they are unlikely to be widely available until mid-2021. A third wave of infection this Spring is likely.
Where are Metro Victoria prices headed?
Home Price Overview
Metro Victoria house prices are near record highs, which has priced many potential home buyers out of the market.
People planning to sell their home will take heart because home values are near all-time highs.
Given the current recession and a Wave 2 of infections, sellers may want to push ahead and sell during the pandemic because there is no guarantee that home prices will maintain current values over the next two years. Typically home prices drop during a recession.
The Coronavirus Pandemic, the resulting recession, and the potential for a second or third wave of infection are now the primary source of uncertainty for home values.
Metro Victoria Detached House Prices
The Victoria benchmark house price is at an all-time high. Government intervention in the market has successfully shielded the real estate market from the pandemic induced recession.
2020-21 – Victoria Market Update Video