June 2024
The Victoria real estate market has remained resilient through this high interest rate period, and now the Bank of Canada has finally decided to start to lower rates. Listing inventory is currently quite high in our region, while monthly sales numbers have remained seasonally low, yet prices have remained stable. This has created a balanced market which is a much better environment to be working in for Buyers and Sellers. However, homes must be well priced or they will be overlooked by the Buyers.
Below are some of the statistics for May 2024
Listing Inventory:
There were 3,338 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of May 2024, an increase of 10.6% compared to the previous month of April and a 52.5 % increase from the 2,189 active listings for sale at the end of May 2023. Buyers are in the driver’s seat at this time, with lots of homes to choose from. However, properties in desirable neighborhoods are still getting sold quickly, and in some cases, with multiple buyers. Therefore, if the right home comes along, I would suggest not hesitate in submitting an offer.
Sales:
A total of 763 properties sold in the Victoria Real Estate Board region this May, 1.5 % fewer than the 775 properties sold in May 2023 and a 12.5 % increase from April 2024. Sales of condominiums were down 5.2 % from May 2023 with 235 units sold. Sales of single-family homes exactly matched the number from May 2023 with 399 sold. Overall sales are down slightly year over year, and only about 1 in 4 homes are selling each month with the high listing inventory. It is critical to price correctly in these types of market conditions. Otherwise, the overpriced homes just sit with very little Buyer interest.
Average Prices:
The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in May 2023 was $1,300,900. The benchmark value for the same home in May 2024 increased by 0.7 % to $1,309,700, up from April’s value of $1,301,800. The MLS® HPI benchmark value for a condominium in the Victoria Core area in May 2023 was $562,900 while the benchmark value for the same condominium in May 2024 increased by 1.2 % to $569,500, up from the April value of $561,200. Surprisingly, with high inventory and lower seasonal sales numbers, prices are still remaining strong, and in some cases, increasing slightly month over month. Standard Supply and Demand models would typically predict a softening of prices in this scenario. Some segments price points of the market have seen some price drops, but others have remained very strong. This shows the strength and high demand of the Greater Victoria market. With interest rates starting to drop, increased demand should keep the market pricing stable for 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
