March 2023
The Victoria Real Estate market remained stable in February with prices dropping slightly while monthly sales increased from the previous month. The overall listing inventory remains low which should help keep prices from dropping much further in the coming months. However, the higher interest rates appear to be with us for the foreseeable future so sales will remain low and Sellers will need to price their homes competitively to attract offers. The Bank of Canada did not raise interest rates this month for the first time in 8 meetings, and the Bank is optimistic that the inflation levels will drop towards the end of 2023. However, they are not ruling out further interest rate increase this year if their criteria points in a different direction in the coming months. In the meantime, the spring market is beginning, which usually brings optimism to the market.
Below are some of the statistics for February 2023
Listing Inventory:
There were 1,809 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of February 2023, an increase of 4% compared to the previous month of January and a 113.1 % increase from the 849 active listings for sale at the end of February 2022. While listing inventory is higher than 2022 levels, the overall listing count is still significantly below historic averages, which should help keep the market stable in the coming months.
Sales:
A total of 460 properties sold in the Victoria Real Estate Board region this February, 35.9 % fewer than the 718 properties sold in February 2022 but a 65.5 % increase from January 2023. Sales of condominiums were down 39.7 % from February 2022 with 161 units sold. Sales of single family homes decreased 28.8 % from February 2022 with 220 sold. The sales numbers in 2023 have been significantly lower than 2022, but the February numbers increased from January 2023, so there is still confidence in the market. Sales should continue to increase in the traditionally busy spring market.
Average Prices:
The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in February 2022 was $1,321,400. The benchmark value in February 2023 decreased by 5.6 % to $1,247,200, down from January’s value of $1,251,100. The MLS® HPI benchmark value for a condominium in the Victoria Core area in February 2022 was $580,900, while the benchmark value in February 2023 decreased by 2.2 % to $568,200, down from the January value of $578,300. The drop in prices slowed for single family homes in February where condos and townhouses. Overall, prices should stabilize as we enter the spring market as long as interest rates do not increase any further.
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
