September 2023
The Victoria real estate market has remained steady this summer. Inventory of homes on the market is still well below historic averages for this time of the year. Increased interest rates have slowed certain sectors of the market, but overall, prices have remained firm due to the lack of supply combined with the desire for Buyers across the country to move to the Island. The Bank of Canada’s September 6th decision to hold rates steady should help the market over the next few months. However, the slowing economy, and refinancing of mortgages to the new higher rates in the coming months may slow the market into the late fall. We are in a somewhat unpredictable market at this time, yet Victoria has remained resilient so far…
Below are some of the statistics for August 2023
Listing Inventory:
There were 2,490 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of August 2023, an increase of 2.9 % compared to the previous month of July and a 16.5 % increase from the 2,137 active listings for sale at the end of August 2022. While up significantly from one year ago, the inventory is about 50% of what it was 10 years ago during the last slow down. Without an increased supply of homes, prices will should remain largely unaffected by the current interest rate levels.
Sales:
A total of 544 properties sold in the Victoria Real Estate Board region this August, 13.8 % more than the 478 properties sold in August 2022 and an 8.6 % decrease from July 2023. Sales of condominiums were up 10.8 % from August 2022 with 164 units sold. Sales of single family homes increased 9.6 % from August 2022 with 273 sold. The drop in sales from July to August is a typical seasonal trend as August is the last month of the summer for holidays before the fall school season, so the market tends to be slower in August. However, sales are up significantly from a year ago, so the overall numbers are pretty good for an August.
Average Prices:
The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in August 2022 was $1,327,700. The benchmark value for the same home in August 2023 decreased by 0.3 % to $1,323,900, which is up from July’s value of $1,318,800. The MLS® HPI benchmark value for a condominium in the Victoria Core area in August 2022 was $583,700, while the benchmark value for the same condominium in August 2023 decreased by 0.3 % to $582,000, which is up from the July value of $578,000. Prices are now relatively unchanged from one year ago, as overall average prices have gently increased over the last few months, so the overall pricing currently is steady. The increases are very small, so I would say this is a fairly balanced market we are currently experiencing. Some areas are slower depending on the price point, and if the range is affected by Buyers unable to afford homes due to the higher interest rates.
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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
