JULY 2022
Hope you are enjoying your summer. The Victoria weather is improving this week which is nice to see. Alternately, Victoria’s hot housing market has continued to simmer this summer. The interest rate increases over the last 6 weeks have affected the overall market significantly, and this combined with the usual summer slow down, is resulting in lower sales numbers than normal while listing inventory is increasing, giving buyers more choice. Multiple offers have all but disappeared, homes are sitting longer on the market, and price reductions are on the rise. Prices are still holding steady statistically but the predictions are leaning towards some price softening in the coming months. Stay tuned…
Below are some of the statistics for June 2022
Listing Inventory:
There were 2,059 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of June 2022, an increase of 15.9 % compared to the previous month of May and a 49.7 % increase from the 1,375 active listings for sale at the end of June 2021. With the rise in listing inventory, buyers now have more time and more choice to shop around until they find the right fit for their needs. A nice change from the frantic pace of the last few years.
Sales:
A total of 612 properties sold in the Victoria Real Estate Board region this June, 35 % fewer than the 942 properties sold in June 2021 and a 19.6 % decrease from May 2022. Sales of condominiums were down 40.2 % from June 2021 with 202 units sold. Sales of single family homes decreased 31.4 % from June 2021 with 302 sold. While sales numbers are down from last year, the numbers in 2020 were higher than usual as the world was coming out of the Covid lockdowns. Lower sales this year were predicted, but the current numbers are considerably lower due to the rapid increase in interest rates. With further rate hikes predicted, the sales numbers will probably continue to drop for the rest of this year and into 2023.
Average Prices:
The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in June 2021 was $1,184,700. The benchmark value for the same home in June 2022 increased by 23.6 % to $1,464,400, up from May’s value of $1,446,400. The MLS® HPI benchmark value for a condominium in the Victoria Core area in June 2021 was $495,900 while the benchmark value for the same condominium in June 2022 increased by 29.7 % to $643,100, up from the May value of $633,800. While these statistics are showing prices holding firm, the current market conditions in June and so far in July are telling a different story. With homes taking longer to sell, and Sellers reducing their prices to attract Buyers, the leading predictors are pointing towards a softening of prices in the coming months
In the meantime, enjoy the rest of the summer. The weather is supposed to get better in the coming week, so enjoy your time with family and Friends.
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
