HAPPY EASTER
April 2022
The Victoria real estate market continues to experience low inventory and high demand as the spring market gets underway. Prices remain at record highs. However, there seems to be a slight shift in the market, as fewer homes are receiving multiple offers, and the over all sales numbers slowed for the month of March compared to 2021 sales volume. Significantly, the Bank of Canada just announced today a whopping rate increase of 0.5%, which will trickle down to variable mortgages, long term mortgages and personal lines of credits. These interest rate increases will eventually play a factor in cooling off the market. This, combined with current Buyer fatigue from the over heated market over the last few years, could result in a softening of the market in the coming months, especially if the listing inventory starts to increase. Stay tuned…
Below are some of the statistics for March 2022
Listing Inventory:
There were 1,063 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of March 2022, an increase of 25.2 % compared to the previous month of February but an 18.0% decrease from the 1,310 active listings for sale at the end of March 2021. Inventory is still low, but there seems to be an increase in the number of Sellers thinking about listing their homes, which could lead to a significant number of homes hitting the market in the coming months. This would help balance the market.
Sales:
A total of 833 properties sold in the Victoria Real Estate Board region this March, 29 % fewer than the 1,173 properties sold in March 2021 but a 16 % increase from February 2022. Sales of condominiums were down 26 % from March 2021 with 279 units sold. Sales of single family homes decreased 28.2 % from March 2021 with 412 sold. The lower listing inventory has contributed to the slow down in sales so far in 2022. This will probably continue throughout this year as interest rates continue to increase. The 5 year fixed mortgage rates have already gone up about 1% over the last month, and the new announcement today from the Bank of Canada will definitely lower the buying power for a large number of new buyers entering the market that are relying on low rates to qualify for substantial mortgages.
Average Prices:
The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in March 2021 was $968,500. The benchmark value for the same home in March 2022 increased by 27.4 % to $1,233,700, up from February’s value of $1,196,300. The MLS® HPI benchmark value for a condominium in the Victoria Core area in March 2021 was $497,000 while the benchmark value for the same condominium in March 2022 increased by 27.8 % to $653,100, up from the February value of $603,600. While overall prices were up slightly in March, it appears that the market has hit a plateau as interest rates increase, buyers become tired of paying prices way over list price, and overall sales numbers continue to decline compared to the 2021 numbers, which may tilt the balance away from the current strong Sellers market to a more balanced market. The result could be a softening of prices in the coming months.
If you or any of your family or friends require any real estate related information, feel free to contact Dale at 250-744-0844, or email him through his website: www.dalesheppard.com
