August 2021:
Hope you are enjoying your summer. The weather has been great. We do need some rain though to help with the burning fires in our province. July was an active month in the Victoria real estate market, but sales started to slow about mid way through July. Prices were still up from the previous month, and may continue upward into the late summer, but not as high as the increases earlier in the year. The main factor appears to be the lack of listing inventory which is making it hard for buyers to find properties. Any desirable property is getting a lot of attention, and this will continue until inventory levels increase for all types of properties. August is continuing with the low inventory numbers, but sales numbers are also down due to the summer holidays combined with a lot of realtors that and are now taking a long needed break. I suspect that there will be an uptick in listing inventory in September when realtors and sellers complete their holidays.
Below are the statistics for the month of July 2021.
Listing Inventory:
There were 1,270 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of July 2021, 52.1 % fewer properties than the 2,653 available at the end of July 2020 and 7.6 % fewer than the 1,375 active listings for sale at the end of June 2021. Again, this low inventory is unprecedented. With so many Buyer’s looking for a home to purchase, and so little choice, the demand on existing stock is extremely high if it is priced correctly. However, it appears that some buyers are losing interest in paying above list price and competing for every home they put an offer on. This has contributed to a recent slow down in the number of sales.
Sales:
A total of 835 properties sold in the Victoria Real Estate Board region this July, 14.7 % fewer than the 979 properties sold in July 2020 and 11.4 % fewer than the previous month of June. Condominium sales were up 18.8 % from July 2020 with 284 units sold. 16 % fewer condominiums sold in July 2021 than in the previous month of June. Sales of single family homes were down 29.2 % from July 2020 with 396 sold. 10 % fewer single family homes sold in July 2021 than in the previous month of June. The sales numbers are affected by the lower inventory, plus the more relaxed COVID restrictions over the last month have taken some of the focus away from real estate as everyone is enjoying their summer holidays.
Average Prices:
The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in July 2020 was $909,900. The benchmark value for the same home in July 2021 increased by 18.9% to $1,082,000, a 1.7 % increase from the previous month of June. The MLS® HPI benchmark value for a condominium in the Victoria Core in July 2020 was $494,900, while the benchmark value for the same condominium in July 2021 was $535,100, an 8.1 % increase. Prices have continued to increase this year. However, the market might be close to a peak in prices, as I have seen a lot of homes not receive multiple offers after holding off on offers for a week. Popular properties are however receiving a number of offers. August should give a better picture on where prices are going. The low listing inventory and a high demand for housing may keep the prices moving in an upward direction, but most likely not at the pace we experienced during the first 6 months of this year.
In the meantime, enjoy the rest of your summer!
