"It's no surprise that our current market is very different than it was last year...due to a number of factors that have created hesitation in consumers, including recent heavy measures by the provincial government to reduce the value of home prices and the federal government's new mortgage qualification rules. Combine these factors with rising interest rates and you've got a housing market that is in transition due to outside influences. Every time there is intervention into a market, it takes a few months for the market to rebalance. With the continual changes of late from different levels of government, our market is experiencing a new cycle of ongoing uncertainty...Unfortunately, in our area we have one third fewer single family homes for sale under $750,000 when compared to last year, so we're seeing pressure from increased competition on a smaller number of homes, which is really pushing the under million dollar market. We have a much larger inventory of higher value homes this year. For listings priced at $1.5 million and above, the number of active listings is almost 50% higher than last year at this time. Arguably, many of these properties may be listed due to new and incoming taxes from the provincial government. The Foreign Buyer Property Transfer Tax, the Speculation Tax, and the increased School Tax are putting pressure on those high value home owners. Unfortunately, these taxes are not resulting in what the government said it intends - to increase the availability of affordable housing."
There were a total of 2,394 active listings for sale on the Victoria Real Estate Board MLS® at the end of May 2018, an increase of 19.6% compared to the month of April and 26.3% more than the 1,896 active listings for sale at the end of May 2017.
In March there were important changes made to the B.C. Speculation Tax, you can see the Ministry of Finance's Tax Information Sheet with more details on the proposed tax here. The B.C. Government Residential Tenancy Branch announced changes in May for landlords providing notice to tenants and other updates. For full details and to understand these changes you can view their news update.