May 2022
Spring is traditionally the busiest real estate season in Greater Victoria, but this trend has been changing this year. Sales have slowed, and listing inventory is on the rise. Interest rates are also on the rise which seems to be the main reason for the sales slow down. Prices are still high but there are signs of a shift in recent weeks, as fewer homes are receiving multiple interest, and homes are sitting longer on the market. This will be an interesting spring market to say the least.
Below are some of the statistics for April 2022
Listing Inventory:
There were 1,365 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of April 2022, an increase of 28.4 % compared to the previous month of March but a 6.1 % decrease from the 1,454 active listings for sale at the end of April 2021. While listings at the end of April were still below 2021 levels, there has been a surge of listings over the last few weeks, so I expect the numbers to be a lot higher by the end of this month.
Sales:
A total of 824 properties sold in the Victoria Real Estate Board region this April, 26.2 % fewer than the 1,116 properties sold in April 2021 and a 1.1 % decrease from March 2022. Sales of condominiums were down 20.8 % from April 2021 with 262 units sold. Sales of single family homes decreased 28.5 % from April 2021 with 403 sold. This lower sales trend is continuing so far in May which is contributing to the increase in listing inventory. The effects of the rising interests are being felt right now in our market, and the extreme sellers market of the last few years is definitely easing off and moving slowly towards a more balanced market. Certain properties are still attracting multiple interest, but the percentage of homes not receiving multiple bids is increasing. This trend should continue as interest rates increase further into June.
Average Prices:
The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in April 2021 was $997,500. The benchmark value for the same home in April 2022 increased by 26.9 % to $1,266,200, up from March’s value of $1,233,700. The MLS® HPI benchmark value for a condominium in the Victoria Core area in April 2021 was $513,100 while the benchmark value for the same condominium in April 2022 increased by 26.7 % to $650,200, up from the March value of $635,100. While prices are still at a peak, the effects of higher interest rates and increased inventory levels, and decreased sales numbers can only result in a softening in prices. This is now being predicted by most banks and economists across Canada. Again, the next few months are going to be interesting in our 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
