JUNE 2022
The Greater Victoria real estate market has made a quick shift from the extremely busy and frantic pace over the last few years to a more practical and calm level. This is a refreshing change and has allowed Buyers to take a deep breath and slow down the home buying process. The rapid spike in interest rates appears to be the main reason for the slow down which has resulted in fewer sales, more homes for sale, and some softening of prices in certain segments of the market.
Below are some of the statistics for May 2022
Listing Inventory:
There were 1,776 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of May 2022, an increase of 30.1 % compared to the previous month of April and a 22.5 % increase from the 1,450 active listings for sale at the end of May 2021. This number should continue to increase over the next few months which will allow more choice for Buyers.
Sales:
A total of 761 properties sold in the Victoria Real Estate Board region this May, 27.5 % fewer than the 1,049 properties sold in May 2021 and a 7.6 % decrease from April 2022. Sales of condominiums were down 23.1 % from May 2021 with 250 units sold. Sales of single family homes decreased 31.7 % from May 2021 with 367 sold. Again, the interest rate increases have contributed to the sales slow down as the mortgage qualifying levels are pricing Buyers out of the market. The slower pace is also allowing Buyers the opportunity to shop around before they commit to a home, a luxury that has been non-existent up until recently.
Average Prices:
The Multiple Listing Service® Home Price Index benchmark value* for a single family home in the Victoria Core in May 2021 was $1,168,800. The benchmark value for the same home in May 2022 increased by 23.8 % to $1,446,400, up from April’s value of $1,424,900. The MLS® HPI benchmark value for a condominium in the Victoria Core area in May 2021 was $495,600 while the benchmark value for the same condominium in May 2022 increased by 27.9 % to $633,800, up from the April value of $630,200. Statistically, prices are remaining stable. However, there are currently more price reductions and homes are taking longer to sell. This could result in some softening of prices in the coming months. Stay tuned as it is going to be an interesting summer market.
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
