OCTOBER 2022
The Victoria Real Estate market has slowed this Summer but I do not foresee any catastrophic collapse. Sales have slowed significantly over the last few months and Buyers and Sellers are now taking days to put deals together as apposed to hours in the Spring. Currently there is no urgency to act quickly, and unless your home is very well priced, it will be overlooked in this market, as only about 1 in 5 homes are now selling per month, compared to about 1 in 2 in the early part of the year. The main reason for the rapid change is the high interest rates. The Bank of Canada is poised to increase rates even further at the next meeting later this month, which is expected to keep the market slow for the rest of the year and into 2023. Prices have been dropping but not drastically. It is a more balanced market for everyone involved and should continue like this for the foreseeable future.
Below are some of the statistics for September, 2022
Listing Inventory:
There were 2,300 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of September 2022, an increase of 7.6 % compared to the previous month of August and a 104.% increase from the 1,124 active listings for sale at the end of September 2021. This increased inventory is giving Buyers more choice, and with only 410 sales in September, Sellers must be priced competitively to attract Buyers.
Sales:
A total of 410 properties sold in the Victoria Real Estate Board region this September, 46.1 per cent fewer than the 761 properties sold in September 2021 and a 14.2 % decrease from August 2022. Sales of condominiums were down 58.8 % from September 2021 with 126 units sold. Sales of single family homes decreased 33.2 % from September 2021 with 221 sold. These low sales numbers are mainly due to the high interest rates. With 5 year rates over 5%, this dramatic increase in rates over the last 5 months has taken a lot of Buyers out of the market.
Average Prices:
The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in September 2021 was $1,201,100. The benchmark value for the same home in September 2022 increased by 13.6 % to $1,364,200 but was down 2 % from August’s value of $1,391,700. The MLS® HPI benchmark value for a condominium in the Victoria Core area in September 2021 was $519,200, while the benchmark value for the same condominium in September 2022 increased by 18.9 % to $617,400, down by 0.7 % from the August value of $621,900. These price drops are a direct result of the textbook supply – demand economics. The lower Buyer demand coupled with higher listing Supply usually leads to a drop in prices. This current supply demand imbalance is expected to continue while interest rates remain high.
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
