November 2023
The Victoria Real Estate market is feeling the effects of the high interest rates. Sales are slowing while inventory is increasing, creating more of a Buyer’s market. While prices in most sectors have remained stable, some areas have seen a slight drop in prices since last month. The positive news for Buyers is there are more homes to choose from, while Sellers on the other hand, must price their homes more competitively to attract interest. Well priced homes are still selling, but just taking longer. The late fall and early winter months are usually slower and the high interest rates are leading to a more significant slow down this year. These market conditions should remain the same for the balance of 2023 and into 2024. The interest rates, inflation rate, and potential for a Recession in Canada are items to watch for in the coming months.
Below are some of the statistics for October 2023
Listing Inventory:
There were 2,756 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of October 2023, an increase of 2.1 % compared to the previous month of September and a 25.% increase from the 2,192 active listings for sale at the end of October 2022. Typically, inventory drops off as we get closer to the end of a year, but this October saw 1100 new listings hit the market. The increase gives Buyers more choice but eventually the higher inventory brings prices down if there are “Have to Sell” Sellers combined with fewer Buyers.
Sales:
A total of 407 properties sold in the Victoria Real Estate Board region this October, 15.2 % fewer than the 480 properties sold in October 2022 and a 17.4 % decrease from September 2023. Sales of condominiums were down 7.2 % from October 2022 with 141 units sold. Sales of single family homes decreased 16.1 % from October 2022 with 193 sold. October, 2023 sales numbers are the lowest we have seen for sometime. High interest rates have put a lot of Buyers on the sidelines.
Average Prices:
The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in October 2022 was $1,257,100. The benchmark value for the same home in October 2023 increased by 3.9 % to $1,305,900, which is down from September’s value of $1,312,200. The MLS® HPI benchmark value for a condominium in the Victoria Core area in October 2022 was $575,300, while the benchmark value for the same condominium in October 2023 increased by 1.8 % to $585,600, which is down from the September value of $589,600. The overall prices in Victoria remain stable but there is a slight downward pressure due to the current market conditions. Overall numbers have been dropping slightly over the last few months and may continue this trend until interest rates drop of consumer confidence picks up.
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
